![]() ![]() “It doesn’t take a genius to figure out why the stock market tends to fall a lot during a collapse in economic growth.We have the only updated/redesigned binocular flasks available. Sometimes all it takes is a minor recession to reset prices.” – Ben Carlson ![]() Every time inflation spikes it doesn’t mean it has to be a repeat of the 1970s or the onset of hyperinflation. “The point here is recessions don’t always have to mean the world is coming to an end. It’s hard to imagine when everyone would wake up. But, in the moment, it’s hard to imagine how everything could come undone. The prices made no sense and we all knew they made no sense. “Looking back now it seems so obvious that valuations of speculative cryptocurrencies and high growth tech stocks would collapse. Maybe you just stumbled into a moment where capital was free and flowing like wine at a wedding. Maybe you weren’t a business genius all this time. “This is a good time for self-reflection. Doing more offers the illusion of control but often hurts performance more than it helps, especially when emotions are running high.” – Ben Carlson “The problem is trying harder does not guarantee better results. Bull markets last much longer.” – Tony Isola Change is your friend regarding the stock market. Bear markets burst onto the scene and eventually flame out, and so it goes. Reducing your consumption of the worst kinds of media will go a long way towards better results of all kinds.” – Barry Ritholtz “Fill your head with junk and it all but guarantees future behavioral mistakes. ![]() These actions can help scratch the urge to DO SOMETHING to ease the pain of seeing red on your statements.” – Blair duQuesnay But every market environment presents an opportunity to do something to improve your portfolio or your total financial picture. “The most important thing right now is not to panic and to stick to your plan, assuming you had one. If everything is working, you’re not really diversified.” – Michael Batnick “Diversification is the only answer to an unpredictable future. “Bear markets function as full-body cleansers for investors’ psyches.” – Tony Isola “Are things really that bad? Looking at some of the sentiment data, you would think the unemployment is 10% and the stock market is down 50%.” – Michael Batnick “Sentiment readings can be fantastic contrary indicators, but they are rarely actionable, and then only when at extremes.” – Barry Ritholtz “There has been way too much exuberance in financial markets over the past 5 years. It’s always this way though.” – Ben Carlson The stock market wouldn’t be falling if things were fine. In every bear market, it feels like the end of the world is near while it’s happening…Things seem bleak right now. If you prefer to contextualize this in terms of adjusting to a new rate regime or a future increase in the cost of capital, well sure, whatever narrative explanation works for you.” – Barry Ritholtz “What is going on in 2022? Perhaps it’s nothing more complex than mean reversion. And that’s where we are today.” – Michael Batnick In bad markets, investors focus on survival. “In good markets, investors value growth. The world we live in did not suddenly lurch from one condition to another in a 24 hour span. One day the Dow Jones is up 800 points, the next day it’s down 1,000. ![]() My colleagues at Ritholtz Wealth Management have been on a roll this past week writing about what is happening and how you should react. For even the most stalwart, a bear market will put you on edge. As you can see the S&P 500 and Dow have yet to officially enter bear market territory, but by every other measure we are in a bear market. ![]()
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