Is another bear market on its way? Join Josh and Austin as they answer this question in this week’s episode! They’ll discuss what a bear market is, what causes a bear market, and what you – as an investor – should do during a bear market. This is one you don’t want to miss, listen now!
Main Talking Points
[1:41] – What is a Bear Market?
[7:18] – Time Periods
[9:00] – Is There Another Bear Market Coming?
[10:05] – What Causes a Bear Market?
[12:05] – Volatility
[15:19] – Dad Joke of the Week
[16:00] – What Should You Do in a Bear Market?
[18:35] – Bear Market Fund
[19:39] – Spending Order
[23:07] – Emotions in Investing
Links & Resources
Invest With Us – The Invested Dads
Free Guide: 8 Timeless Principles of Investing
Social Media
Full Transcript
Intro:
Welcome to The Invested Dads Podcast. Simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments, here are your hosts, Josh Robb and Austin Wilson.
Austin Wilson:
All right. Hey, welcome back to The Invested Dads Podcast, the podcast where we take you on a journey to better your financial future. Today, Josh, we’re going to be talking about the big question everyone is talking about. I mean, it’s buzzing like bees.
Josh Robb:
Yes.
Austin Wilson:
Is another bear market coming?
Josh Robb:
Okay. Bear market. Every time I hear that in my head… You know the picture of dogs playing poker?
Austin Wilson:
Oh, yeah.
Josh Robb:
Right. Bear market aways… You got the traders on the floor with their little headphones and their papers. I picture bears running around doing that. So a bear market: that’s what’s in my head. Is there a bear market? Sell, sell, sell.
Austin Wilson:
Not like a market of bear meat?
Josh Robb:
Sell, sell, sell.
Austin Wilson:
Market of bear meat might scare off our PETA listeners.
Josh Robb:
That’s true.
Austin Wilson:
But we don’t typically cater to those three people anyway. No, I’ve not really considered talking about it like bears running the market. In fact, nowadays you can do everything electronically so those pits don’t really get as much-
Josh Robb:
That’s true.
Austin Wilson:
… mojo as they used to. But anyway, that’s not exactly what we’re talking about today. We are going to be talking about whether or not another bear market is coming. We’re sitting here recording this on the day where the Dow’s down over 900 points and everything’s down 2% or more. It seems fitting. It seems like a great question. So, Josh-
Josh Robb:
We’re probably in a bear market right now, right?
[1:41] – What is a Bear Market?
Austin Wilson:
That leads me to my next question. Josh, what is a bear market?
Josh Robb:
Good question. A bear market, is generally thought of, the kind of generalization, is a 20% drop from an all-time high.
Austin Wilson:
20.
Josh Robb:
20%, two zero.
Austin Wilson:
It’s a very round number that someone arbitrarily picked at some point.
Josh Robb:
That’s right. They said that feels like a bear.
Austin Wilson:
That’s feels like a bear.
Josh Robb:
I don’t know.
Austin Wilson:
And that’s opposed to another term we heard is like a correction-
Josh Robb:
Is 10%-
Austin Wilson:
… Got you.
Josh Robb:
… so about half of that. A bull market on the other direction is 20% up from below. So bull market is good, bear market is bad. 20% down, notice that 20% both directions-
Austin Wilson:
We like 20%.
Josh Robb:
Yes. Bull market is generally thought of as 20% down from an all-time high-
Austin Wilson:
Bear market.
Josh Robb:
…Yes, I’m sorry. Bear market is down. Does that happen all the time?
Austin Wilson:
Yeah.
Josh Robb:
What do we think about it? Now, we just experienced one.
Austin Wilson:
True.
Josh Robb:
We had a more than 20% drop last year in 2020… But let’s think, historically speaking, Austin, what do we got?
Austin Wilson:
Numbers, we like numbers, numbers guy. There have been 26 bear markets since 1929, and that was a very rough time for the stock market if we recall. But 26 bear markets since then, that means that historically, all the way back to ’29, there’s been a bear market, so a 20% draw down, once about every five years. Now, the caveat being that since World War II, it’s been less frequent. However, looking back to that data set, it’s been once about every five years.
Josh Robb:
Okay.
Austin Wilson:
Generally speaking, bull markets have far outlasted bear markets. That really is evident when you look at the overall long-term stock chart, it’s going up into the right in general. That does not mean they don’t happen because they surely do. Generally speaking, bull markets last a lot longer. Bear markets can be very short. They can be as short as about six months or so, which we can attest to as we remember last year.
Josh Robb:
Last year, yep.
Austin Wilson:
Or they can last years. You can have a slow sell off that takes years of decline, and then even more years before you’re recovered to where you were beforehand. This is not the case recently. This last specific COVID-19 sell off and recovery has been very, very fast, but prior ones, I’m thinking global financial crisis, specifically-
Josh Robb:
That’s 2008, 2009.
Austin Wilson:
Yeah 2008, 2009, that was a very long sell off six months a year. And then years before we recovered to all time highs from there. So-
Josh Robb:
Just as a reference point. The market… Let’s take away, 2008, 2009, the global financial crisis, the market dropped a total drop of, I think it was done like 53%.
Austin Wilson:
Yep.
Josh Robb:
That happened over a six plus month time period. And then it was another three-ish years before the market recovered.
Austin Wilson:
Correct.
Josh Robb:
So we’re in a bear market that whole time, because we have yet to have that 20% growth to get to that bull market, is that right?
Austin Wilson:
The bull market timing, when you’re technically in a bull market, you have to retroactively say when the bull market started.
Josh Robb:
Yeah. We don’t know.
Austin Wilson:
You don’t know until you’ve actually eclipsed those highs. So when you get to the highs, you look back and you say, “Okay, the bottom was when the bull market started”.
Josh Robb:
Yep.
Austin Wilson:
However, it’s really a hard thing to do. So anyway. Yeah.
Josh Robb:
You never know when you’re in it.
Austin Wilson:
You know, after is over.
Josh Robb:
Technically-
Austin Wilson:
It’s like a recession…
Josh Robb:
… It could just put the highs and lows and back to the highs.
Austin Wilson:
It’s like a recession, which side note doesn’t relate to a bear market here, but there’s certainly was one during this time. But the National Bureau of Economic Relations, the NBER, who is officially the one who calls, whether we’re in a recession or not-
Josh Robb:
Do they use a landline to call them or-
Austin Wilson:
Physically. Yeah. It’s a physical line you have. And you can’t answer on wireless phone, you have to answer on a corded phone. But they announced today. So we’re recording this on the 19th of July.
Josh Robb:
Yes.
Austin Wilson:
They announced today that they call it a recession starting in February of 2020 due to COVID.
Josh Robb:
Yes.
Austin Wilson:
They announced today that the recession ended. So they announced in July of 2021 that the recession ended in April of 2020.
Josh Robb:
Okay.
Austin Wilson:
And it was two months-
Josh Robb:
Historically speaking backwards. And it felt like we were in a lot worse there-
Austin Wilson:
Exactly.
Josh Robb:
… the rest of it.
Austin Wilson:
Anyway, these are all historically speaking.
Josh Robb:
And bear markets/bull markets, it’s really, like you said, a historical reference point while you’re going through them. You don’t really know, at any point in time, where you’re at, because, again, we’re on our way down; could stopped here, could keep going, we don’t know.
Austin Wilson:
Exactly.
Josh Robb:
So we could be in a start of a 20% down, which will turn into a bear market.
Austin Wilson:
Yep.
Josh Robb:
We don’t know, or it could turn around and hit all time highs again and reset that whole thing.
Austin Wilson:
Because you’re always counting it off of peaks and troughs.
Josh Robb:
Peaks and troughs.
Austin Wilson:
We were just last week at all time highs. And then, any bear market number would be off of those all-time highs. And then once things bottom, any bull market is measured off of the not all time lows, but the period lows right there. That’s kind of exactly where we’re at there. The last two bear markets we’ve had have been very different. Global Financial Crisis was two bear markets ago and that was in 08, 09, a lot of us remember that, and that really scarred a lot of people in the financial markets. Stocks were down over 50% and took a multiple years to rebound. The COVID-19 sell off last year, in 2020, very fast; little over 30%, almost a handful of months to get back to all time highs. And I remember this because I made a deal that I would not cut my hair until a, you remember that-
Josh Robb:
Yes, I do.
Austin Wilson:
… Until the market got back to all time highs-
Josh Robb:
And I think that you’ll be like Rip van Winkle or something like that.
Austin Wilson:
Nope. Did not happen. I had short hair and it only got to the wavy surfer boy stage.
Josh Robb:
Yes.
[7:18] – Time Periods
Austin Wilson:
That’s as far as it got. So focusing on time periods like we’ve talked about is key and sure severe market downturns have happened and probably will always happen. But over longer terms, the market has always rebounded to new highs. And beyond, look where we’re at today. We’re right around also most, but a year and change ago, we were not. And in fact, like I said, time periods are key, there has never been a 20 year period where you’ve lost money in the broader stock market. Now that’s not saying an individual company has a met down for 20 years. But the broader stock market, think about the S&P 500 or whatever, has never been down for 20 years straight. 17 ish I think to be exact.
Josh Robb:
It’s actual. Yep.
Austin Wilson:
And 99.7% of 15 year periods have been positive. 94% of 10 year periods, 88% of five-year periods and, check my note here, 75%… 84% of three year periods, 75% of one-year period. So time is key when you’re talking about all these things.
Josh Robb:
If you look at, then… Again, this is all historical data, there’s no guarantee for future stuff, but we based our future assumptions off of what’s happened historically, because that’s all we can do. So if we say, if we know three out of every four years historically ends positive, you have a positive return in three out of every four years, one out of every four years is down, then in the long run of investing, if you have three good years, one bad year, you should be making progress forward. And that’s really what investing is: you just give your investments enough time to grow into compound and earn your money.
Austin Wilson:
Exactly.
Josh Robb:
That’s the whole point.
Austin Wilson:
The time that you are invested is way more important than the little short term movements in the market.
Josh Robb:
Right.
[9:00] – Is There Another Bear Market Coming?
Austin Wilson:
Josh, ask me-
Josh Robb:
Let’s do it.
Austin Wilson:
… The question of the week.
Josh Robb:
The question of the week. Okay, Austin. Now that we know what a bear market is, is there bear market on its way? Is it coming?
Austin Wilson:
Yes.
Josh Robb:
All right.
Austin Wilson:
Yes. There is another bear market.
Josh Robb:
We will see you guys next week? Oh, wait there’s moree.
Austin Wilson:
This is not saying, “Go sell, go to cash, freakout, another bear markets coming”. I’m not saying that. Because the answer is really not that simple. While I do believe that there’s another bear market coming at some point, maybe some point soon, maybe some point further down the road. There’s going to be another one. We can-
Josh Robb:
Probably there’s a good chance within the next five to seven years-
Austin Wilson:
Oh yeah.
Josh Robb:
We will see a bear market.
[10:05] – What Causes a Bear Market?
Austin Wilson:
That’s a fair assessment, that’s a pretty fair assessment. We can reasonably assume another bear market is coming well. Not necessarily now. Not necessarily soon. Someday. It can be caused by a variety of things that we’ve seen over the last handful we’ve seen. Geopolitical drama can happen, war, commodities collapsing, pandemic, that’s we just had. Those are a few. But what is working out in causing this to happen behind the scenes is almost always the same.
Josh Robb:
Yep.
Austin Wilson:
And what that is is that people who are trading stocks, or institutions that are trading stocks, whether that be big institutions, retail, traders, whatever, they all tend, and we are part of this, we all tend to be overly optimistic on the prospects of growth and earnings when stocks are doing well. So what that causes us to do is we buy, buy, buy, and what that buying does is it bids prices up, and too fast, too soon. And that causes things to get elevated. Well. Then on the flip side, people tend to be overly pessimistic when things change, when things are bad, when those instances that we talked about happen, the war, the drama about geopolitics, commodities, whatever, pandemics, overly pessimistic, things where we think things are going to be way worse than they actually ended up being and then we actually sell things off too fast, which causes the prices to go down too fast.
It’s a human nature thing. We are too happy when things are good and we’re too sad when things are bad. And the truth is that the reality of the market and the economy is going to be somewhere in the middle. We’re reactionary people and that’s exactly what happens. But the underlying reason that bear markets essentially happen, and subsequent recoveries happen, is the same. We’re too happy when things are going up and we’re going to be just buying, buying, buying, even when maybe we shouldn’t buy as aggressive; and we’re too bearish, to put it another way, when things are bad. And we just bake in too much bad news into the prices.
Josh Robb:
Yeah. And in a sense, there would be zero bear markets if people didn’t sell. Oh yeah. Because on the exchange where you buy and sell stocks, the price is based on what people are willing to exchange them for. So if no one’s willing to exchange them, the price really won’t move because there’s no recent thing to move it from the last bit.
Austin Wilson:
Yeah.
[12:05] – Volatility
Josh Robb:
So that’s really, like you said, it’s the reactionary to what’s going on, is people’s reaction to it, which brings the word “volatility”-
Austin Wilson:
Uh. I love that word.
Josh Robb:
… Into this whole thing. Volatility, which is really just the movement of… We’re talking about investing, so we’re going to talk about stocks… The movement of the stock up and down. Volatility in and of itself is not bad.
Austin Wilson:
Right?
Josh Robb:
Because moving upward involves volatility.
Austin Wilson:
Oh. Of course.
Josh Robb:
Moving a direction away from where you work. And so people look at volatility. I think that’s a bad thing. I don’t want volatility. You don’t want to grow? And that’s the question. The volatility, you need to understand what the range is, what kind of volatility in your investment. So if we take, for instance, Bitcoin, the volatility of a digital currency like that is very high. The swings both directions are big. You take something more stable, like a Walmart, that’s been around for a while, they have pretty good cash flow, they pay dividend, they’re a company who’s kind of staple…
Austin Wilson:
Yep.
Josh Robb:
To put it in a general term, again, not a recommendation for a holding or to buy or anything, but just using this as an example… Their volatility is-
Austin Wilson:
Much smaller.
Josh Robb:
… much smaller than what you would get if you owned a digital currency-
Austin Wilson:
You know what’s even lower?
Josh Robb:
What’s even lower?
Austin Wilson:
A bond!
Josh Robb:
A bond is even lower.
Austin Wilson:
You know it. Is a fixed debt payments.
Josh Robb:
Yes.
Austin Wilson:
It’s fixed.
Josh Robb:
Yep.
Austin Wilson:
So that’s why bonds are even less volatile than stocks.
Josh Robb:
Yep.
Austin Wilson:
Now I guess it’s probably good. We’ve talked about this many times before, but it’s good to point out that this volatility and bear markets are part of that. That is the reason why stocks have outperformed. All other real asset classes. Cryptocurrencies are so new, we can’t really put those in a bucket right now. But major asset classes over time, that’s the reason stocks have outperformed because they’re volatile, because they do have instances like corrections and bear markets semi-frequently. It’s the risk that you are being rewarded for-
Josh Robb:
You are getting compensated for taking risks.
Austin Wilson:
Exactly. That is why stocks have returned well over bonds and other commodities or whatever over time.
Josh Robb:
Yeah. It’s saying volatility and risk are not interchangeable.
Austin Wilson:
Correct.
Josh Robb:
Volatility is the movement or the swing of the price. Risk is what you’re, in a sense, putting out there or taking a chance of losing. They’re not the same thing. And when people say, “I don’t like to take risks”, that doesn’t mean volatility, that you don’t want any volatility. Just means, “I need to be aware of the movements” and associate that with what your goals are and say, “Okay, does that match?”
Austin Wilson:
Right.
Josh Robb:
Yeah.
Austin Wilson:
And something Nick Murray… We’ve talked about him before. Something he said is that the risk really is not about volatility, because if your time period is long enough, volatility is irrelevant really. It is the fact that if you want to be able to do what you want to do with your money and you have a certain return bill in there to get there, stocks are the only way to get you that return. So the risk is not that you lose your money. The risk is that you don’t have enough stocks, that you’re not going to grow your money to meet your goals.
Josh Robb:
Yeah. Your risk becomes something other than volatility.
Austin Wilson:
Exactly.
[15:19] – Dad Joke of the Week
Josh Robb:
It becomes the missing out on the chance to utilize that growth, to meet all of your goals. All right. Let’s take a break. I have a dad joke for you that I’m excited for…
Austin Wilson:
I’m excited too. It doesn’t involve bears?
Josh Robb:
No, it does not. But it does involve… At home I took all of my watches, put them together, made them into a belt.
Austin Wilson:
Okay.
Josh Robb:
It was a “waist” of time.
Austin Wilson:
It was a “waist” of time.
Josh Robb:
Waste. Waist.
Austin Wilson:
That’s good. Do you… I wonder-
Josh Robb:
I don’t have enough watch to do that.
Austin Wilson:
You’re wearing your nice little Samsung watch. That’s not going to get very far around your waist.
Josh Robb:
I really don’t own a lot of watches. I have a decent sized waist. So it’s not got to work.
Austin Wilson:
A “waist” of time. That’s a good one, Josh. Let’s make us boil it down to some really practical things here.
Josh Robb:
Yes.
Austin Wilson:
And I have a feeling I already know what you’re going to say, because you’re a predictable creature.
Josh Robb:
Answer for everything.
[16:00] – What Should You Do In a Bear Market?
Austin Wilson:
Josh, what should we do in a bear market?
Josh Robb:
It depends.
Austin Wilson:
Ah-
Josh Robb:
Yes.
Austin Wilson:
I knew you would say that.
Josh Robb:
And really, again, it comes back to just because you’re in a bear market doesn’t mean you need to make adjustments to your strategy. Hopefully you’ve already taken into fact the risk or volatility that you’re going to experience in your strategy, your asset allocation, that a bear market is within your tolerance to say, “You know what? No one likes to see that movement downward. No, one’s happy that it’s moving down”, but you say it, “I’m comfortable with it. I know what my goals are. And I’m comfortable with where I’m at”. Now, depending on your age, the ability to tolerate that risk may vary-
Austin Wilson:
Absolutely-
Josh Robb:
If you’re young and you’re adding money in, and this is key, so bear markets downturns for anybody adding money in is actually a good thing.
Austin Wilson:
Good thing.
Josh Robb:
Because you’re now buying the same thing at a lower price.
Austin Wilson:
Yeah. In an exaggerated lower price.
Josh Robb:
Yes.
Austin Wilson:
So if these prices get lower than they should.
Josh Robb:
Yeah. If it’s a $10 stock and you see a 20% drop, 20% off of that is $2. So you’re at $8.
Austin Wilson:
Yep.
Josh Robb:
So now I’m buying the same company that was worth $10 per share for $8 and, realistically, if I’m buying a two, I think they’re going to be around, so they’re probably going to at least get back to $10. And I’m buying them on sale, knowing that they’re going to grow back to that hopefully more, but that’s really what this is about. Bear markets give you the opportunity to buy great companies at a discounted price.
Austin Wilson:
Right.
Josh Robb:
So if you’re young and you’re adding money into the market, that’s great. Dollar cost averaging is something we talk about. That’s where you add money in periodically through a set time frame. 401(K)’s, great example of that. They take money out of your paycheck. Every time you get paid, it goes right in there. If you’re having your contribution, you’re averaging in, you’re buying no matter what’s going on. Doing so gives you a better long-term return than if you try to pick-choose when that was going to happen. No one’s good at that. So, young people, bear market is actually a good thing for you when you’re adding money in. If you’re older retirees, that’s a little bit more stressful because you’re probably withdrawing from the portfolio.
Austin Wilson:
Oh, yeah.
[18:35] – Bear Market Fund
Josh Robb:
And there’s others things you can do about that. But even then, hopefully you’ve set up a plan that you’ve tested for what if, because the “what if” isn’t there, it’s when right. We just talked about that. On average, you’re going to get it every five-ish years. So I’m hopefully going to have more than a five-year retirement. When the market goes down, how does that impact my long-term success? Hopefully you’ve already worked through that. Now, there’s some things you can do. There’s one that we like to do with clients we’d just call it a “Bear market fund”. When a bear market shows up, you have a portion of your investments in a more conservative bucket that doesn’t have that volatility, doesn’t have that drop a 20%, where you can turn and start withdrawing from there. So you’re not taking money out from that thing that’s down 20 plus.
Austin Wilson:
That’s the key right there.
Josh Robb:
Yeah.
Austin Wilson:
Don’t sell things-
Josh Robb:
Don’t take money out-
Austin Wilson:
-in the bottom.
[19:39] – Spending Order
Josh Robb:
Yes. But, and again, coming back to, if you’re doing these long-term projections for retirement planning, you factored in those ups and downs that if you have to take it out, you’ve already planned it in. But what we see in real life is: one, It’s nice to have something that’s not down to draw from. Two: a lot of people will make adjustments.
Last year, and again, COVID is a bad example because you weren’t really allowed to do much traveling, things weren’t open. But we do see when there’s a downturn, 08, 09, you maybe cut back on your travel. You don’t do as much vacation. You make some adjustments to your living expense, so you don’t spend as much. Some people even choose to go back to work, to offset some of those withdrawals with some income. And then your spending order matters.
There’s kind of this… First, when markets are positive, you take from your stock growth. That’s the piece that you first draw from. If markets are positive, then you go to your next positive piece, which is usually bonds, draw from there. If you don’t have any growth out of those, your positive returns. You then go to your cash, take out of whatever cash you have. If you still need withdrawals, you swing back around and start taking out in the reverse order. The things that are down less, which would be bonds again. And then you end up back at stocks at the very end . If you have to go in through all those, you’ll draw from your stocks, which are down the most. So there’s a spending order and a distribution concept that you says, “Okay, where do I pull money from?”
Austin Wilson:
And this is an example, especially for those who are more in the retiree side of the spectrum of investing of… This is why you keep your asset allocation in line with what you would expect and rebalance frequently, because that prepares you for things like a bear market in the equity market, because you’re prepared for those other, we have those other, options that you can draw from if needed. That’s why rebalancing is very important, especially as you get a little further down the road.
Josh Robb:
Yeah. And again, if you have your goals in place and you have your strategy there to metric goals, these things should have already been kind of thought out and planned for. Because again, maybe when it happens might be a surprise. Last year I don’t think anybody went into 2020 thinking we’re going to have a bear market. Things look pretty positive economically. Something triggered that bear market. So you may be surprised when it happens, but you shouldn’t be surprised from a planning standpoint that a bear market showed up.
Austin Wilson:
Right.
Josh Robb:
And so you should say, “Okay, we plan for this. We have something in place. Here’s what I’m going to do”. It should not come as a shock. So that’s again why we always say you need to have a good financial planner helping you along the way, to talk about those future events that will happen.
Austin Wilson:
Right.
Josh Robb:
And so that you’re not forced to then panic sell, do things that will hurt you long-term just because you didn’t think that’s coming,
Austin Wilson:
Selling when you don’t have to sell because you’re scared is one of the worst decisions you can make, because you’re going to do more damage than the years that you put together doing the right thing. You can undo it really quickly in a bad decision.
Josh Robb:
Yes, definitely.
Austin Wilson:
So I guess, summarizing what you’ve said for those younger people in their saving career. Bear markets are a good thing because they’re by allowing you to get a discount on great companies. So if you have the opportunity, and a tough equity market time comes, in this more actually, that might be a great opportunity for you to do, open up a Roth, do things like that. But as you get further up the age spectrum towards retirement, your risk tolerance has likely, maybe not for everyone, but has likely come down a little bit. So be sure that you’re adjusting your asset allocations and you have options for when those times comes, so you don’t have to sell your equities when they’re down.
Josh Robb:
Yep. Any it’s a not even maybe, your risk tolerance went down, in fact I see a lot of people as they spend more time investing their risk tolerance goes up, but their goals don’t require that full risk allocation. If I’m heading into retirement, I may be comfortable 100% stocks because I just spent the last 30 years accumulating that way. So I’ve learned the ups and downs, but I may say, “You know what? Heading into retirement, I may need a couple of years worth in a more conservative bucket. I’m going to put that there. And it may move my allocation down and I may be taking less risk. Not because I can’t tolerate it, but my goals are matching up to that”. Which is great. Why take the risk?
Austin Wilson:
Well, you don’t need to take more risk.
[23:07] – Emotions in Investing
Josh Robb:
Yeah. Just again, when it comes to planning, if things were to go bad, how would I respond? What would my emotional response be to this? Because emotions in investing, you can’t remove them. When it involves your money, you’re going to be emotionally attached to it. You worked hard for that money. You’re emotionally attached to that. So understand that you have to factor in your emotions. What will I do if tomorrow I have $10,000 in my account and I wake up and now it’s 5,000. How will I react to that?
Austin Wilson:
Right.
Josh Robb:
It’s my emotional risk tolerance at a point where I’ll say, “Oh man, that’s not great, but I’m going to stick with my plan”. If that’s not the answer, then let’s reevaluate where your risk tolerance is and where your asset allocation is to say, “okay, maybe we should only make sure it goes down from 10 to seven”. And then “Yeah. That’s okay. I’ll feel better about that”. Find that happy spot because you’re better off missing out a little bit of gains and not making that bad decision.
Austin Wilson:
Right.
Josh Robb:
That’s huge.
Austin Wilson:
All right, everyone. Two things. Number one: it is still not too late to enter our second half stock draft competition. In fact, you could enter all the way through December 30th.
Josh Robb:
That’s right. And you start with the same amount as everybody else.
Austin Wilson:
If you look at the rankings, I’ve actually could be to your benefit right now because-
Josh Robb:
You get a bonus.
Austin Wilson:
… a lot of people have lost money ourselves included in the first handful of weeks that this has been going on. So check out our website for details on how to do that, but is not too late. So do not forget.
And number two, as always check out our free gift to you, a brief list of eight principles of timeless investing. These are overarching investment themes meant to keep you on track to meet your long-term goals. We talk about volatility. We talk about time in the market. We talk about all of those important things. So check that out. It’s free on our website. Josh, how can people help us grow this podcast?
Josh Robb:
Yeah. Make sure you subscribe that way. Every Thursday you’ll get their most recent podcasts sent right to whatever you use as your listening device. Leave us a review on apple podcasts, if that’s what you use. And if you know anybody who was talking about bear markets, asking about bear markets, or just concerned about the market in general. Share this podcast with them. And if you have any questions, thoughts, or having trouble getting in our stock draft, shoot us an email to hello@theinvesteddads.com.
Austin Wilson:
All right, we’ll see until next Thursday, have a great week. Bye.
Outro:
Thank you for listening to The Invested Dads Podcast. This episode has ended, but your journey towards a better financial future doesn’t have to. Head over to theinvesteddads.com to access all the links and resources mentioned in today’s show. If you enjoyed this episode and we had a positive impact on your life, leave us a review, click subscribe, and don’t miss the next episode. Josh Robb and Austin Wilson work for Hixon Zuercher Capital Management, all opinions expressed by Josh, Austin or any podcast guests are solely their own opinions and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions in the securities discussed in this podcast. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns. Securities investing involves risk, including the potential for loss of principle. There is no assurance that any investment plan or strategy will be successful.
