To My Readers,
Here are some events over the past 25 years (1997 – 2022) that caused market volatility:
- Asian financial crisis
- Russian default
- Tech collapse
- 9/11
- “Lost Decade” for stocks
- Great Recession
- Global Pandemic
- Second Russian default
What was the average return for the S&P 500 index during this time period?
+9.8% per year, which is very much in line with what returns have been over the history of the S&P 500.
Investing is always uncertain, and that uncertainty never goes away. It is because of this uncertainty that there is a positive premium when investing in stocks vs relatively riskless assets. To see those positive benefits, however, requires you to be a long-term investor.
While I can't predict what might happen over the next 25 years, I do believe that the best investment strategy is the following:
Do not panic. Instead, focus on investing for the long run
If you, or anyone you know, is feeling anxious about the markets or their investments, please do not hesitate to reach out to me. I’d be happy to help, even if all you want me to do is listen.
Thank you,
Sid Misra, CFP®
Beacon Financial Group
By The Numbers Housing Boom
The median sales price of existing homes sold nationwide in April 2022 was $391,200. This is the highest recorded in US history.
$391,200 is up +47% from the $266,300 median sales price in January 2020, and up +125% from the $173,700 median sales price in April 2012, 10 years ago.
(National Association of Realtors)
Sky High
Airfares increased by +18.6% in April 2022 on a month-over-month basis, the largest 1-month airfare inflation advance.
Airfares were also up +33.3% on a year-over-year basis, the highest annual airfare inflation increase.
(MFS By the Numbers)
It May Pay to Switch
According to a recent ZipRecruiter survey, approximately 64% of job-switchers said their current job provides more pay than their previous job. Among these workers, nearly half received a raise of 11% or more.
(https://www.wsj.com/articles/workers-are-changing-jobs-raking-in-big-raisesand-keeping-inflation-high-11650792602)
Speaking of making a career move, I recently hosted a webinar with Ben White, Senior Director of Talent Strategies at Titus Talent Strategies and also YouTube creator of the popular channel Ben Talks Talent.
In the webinar, Ben discusses:
- Why you should consider a career move
- Even if you don’t make a move, why keeping your sword sharp (interview skills, etc) is important
- How to leverage LinkedIn and your resume
- How to prep for general and role-specific interviews
- Negotiating salary and benefits
- Countering their offer
We also had a great Q&A session at the end with very relevant questions from our live audience and YouTube channel viewers!
Cybersecurity
Be on the lookout for phishing scams
Phishing emails don’t stop once you retire. In fact, you may be inundated with new phishing scams about your retirement accounts, Medicare, or Social Security. You must continue to be vigilant when looking at your emails.
Remember E.M.A.I.L which stands for Examine Message and Inspect Links
Don’t click on any links or open any attachments that you are unsure of. Government agencies like Social Security and Medicare are not going to ask for your personal information via email.
If you are unsure, delete the email and call the agency or company directly
The opinions voiced in this material are for general information only and are not intended to provide specific advice financial or tax recommendations for any individual.
All performance referenced is historical and is no guarantee of future results.
All indices are unmanaged and may not be invested into directly.
Comments