We were featured and interviewed for The Wall Street Journal in an article entitled:
Here’s the link to the article: https://www.wsj.com/articles/bitcoin-in-your-401-k-is-that-a-good-idea-11651291205
Markets gifted us with another burst of volatility and headlines are looking apocalyptic again.
Some folks might think it's time to bail on markets, but I'll tell you why that thinking is a mistake.
First, let's peel back some layers to explore what's driving markets. (Want to discuss any concerns directly? Just Contact Us.)
What does your dream vacation look like?
Are you picturing the white sandy beaches of a tropical island?
Maybe lush wilderness, ancient ruins, or a glittering city?
If you’re like many folks, you want luxury and a longer stay for your next vacation.1
You may even want to connect, heal, or finally experience that once-in-a-lifetime adventure.2
Those are just some of the most popular trends in travel these days.
Markets bucked and sold off again. (1)
Should we be worried?
Not necessarily. These things happen pretty regularly, especially when headlines are negative.
In fact, you might recall that we kicked off 2022 with a big drop. (2)
So, let’s talk about what’s behind the latest wild market ride.
(Scroll to the end if you want to skip right to the reassurance.)
What led to the selloff?
A number of economists think that a recession may be on the horizon.(1)
The latest forecast by the International Monetary Fund predicts that Russia's invasion of Ukraine is going to take a chunk out of global growth this year and next.(2)
Fannie Mae is forecasting slowing growth in 2022 and a recession in 2023.(3)
When multiple forecasts start pointing in the same general direction, it’s worth paying attention.
So, what do we do with that information right now?
Do we panic and freak out? Bail on our investment strategies to head off losses?
Nope.
You’ll often hear folks like me say that investors or markets “hate uncertainty.”
And that causes market drops and volatility.
Why do we hate uncertainty so much?
And how can we look past initial reactions and embrace the power of uncertainty?
I made a short video discussing 3 secrets to embracing the power hiding inside uncertainty.
SAN LUIS OBISPO, CA, 3/31/22 – Eric Maldonado, Owner of Aquila Wealth Advisors, LLC has earned the Certificate in Blockchain and Digital AssetsSM from the Digital Assets Council of Financial Professionals. He joins an exclusive group of financial professionals with the credentials to serve investors who are curious about bitcoin, blockchain, and digital assets.
First, what is a bear market? It’s when stocks have dropped more than 20% from their last peak.
So yes, in some sectors, we are in a bear market territory.(1)
But, as of this writing, the broader S&P 500 has not entered a bear market. It’s possible it will, especially in this environment, but it hasn’t yet.
So, let’s remember goals-based investors with a financial plan are not day traders.
We’re long-term investors, and the day-to-day and week-to-week gyrations aren’t as important as what happens over years. What’s more important are the values, objectives, and time frames that have been laid out in your financial plan, in advance. If the financial plan doesn’t change, or your personal goals don’t change, then the investments don’t change.
Here’s a quick chart showing just how common big market drops are:
Bull Market and Bear Market Quiz!
For a bear market to begin, do stock prices have to fall by 10%, 15%, or 20% from a recent high?
Do you know the answer off the top of your head?
If you said 20%, you’re right!
