"Doing well with money has a little to do with how smart you are and a lot to do with how you behave.
And behavior is hard to teach, even to really smart people."
- The Psychology Of Money
The good news is the January Barometer has been broken lately.
In fact, 9 of the past 10 times stocks were down in January, the final 11 months were higher. Some by a lot (like last year).
Be aware of this little fact when you hear the narratives on this the next few days.
Stocks are nearing a correction.
This isn't fun, but it is part of the process sometimes.
Here's a list of all the other corrections since 1980. Each felt really bad as well.
A year later? Up 25% on avg and higher 90% of the time. Two years out gets ever better.
S&P 500 total returns:
1 year +15%
3 years +73%
5 years +111%
10 years +303%
Nasdaq 100 total returns:
1 year +8%
3 years +117%
5 years +196%
10 years +549%
In reversal of decade-long decline, Americans of all education levels have seen substantial increase in cash relative to debt
@TS_Lombard @federalreserve
How Often Should You Expect a Stock Market Correction?
"The only reason you get high returns over the long run is that you occasionally experience losses in the short run. This is a feature, not a bug."
https://t.co/VDbMLRwOke
by @awealthofcs
We preach about avoiding “lifestyle creep”, sounds like Gronk does too.
Rob Gronkowski is retiring—here's the No. 1 piece of financial advice he gave his teammates https://t.co/edL4SRdlg9
The Fed starting it's rate rising cycle marks an important inflection point. It's the bona fide measure of being mid-cycle in the bull expansion, not a signal of its end. History shows that the bull continues for years, on average, with solid gains left to be realized. #halftime
When the markets go down, it feels like a wild animal is chasing you. The only thing to do is run! Good instinct… wrong behavior.
From my Weekly Letter. Sign up at https://t.co/ndGqpi42bk.
This thread has important reminders. We're having conversations with TVFCU members daily on the markets & strategies for investing. Set a time to talk with us if you need a second opinion.
The S&P 500 hasn’t dropped 5% or more from a rolling month high since November.
On average, the S&P has dealt with two of these 5% drops per year.
Ups and downs are normal.
My latest: The IRS has extended the April 15 due date to May 17, but only for individual filers.
Surprise: it's not yet clear what the deadline for 2020 IRA, Roth IRA and HSA payments will be. It may still be April 15.
https://t.co/Ja5yq43cQk
We've shared this chart a lot, but the two previous best starts to a bull market ever ('82 and '09) both began to tire some around now.
After a 76% rally, why would this time be much different?
Time to catch your breath is necessary to continue on the journey.
This week's college savings newsletter features: Reporting 529 plan withdrawals on your tax return, How student loans affect income taxes, What you can't pay for with a 529 plan and more. Click here to read: https://t.co/QJAt1Kw1RQ
#newsletter#529plans#taxtips
If you bought SPY one year ago from today...
over the next 5 weeks you would lose 34% of your money
and you would still be up nearly 20% in total over the past 12 months
TVFCU members are asking many questions about getting a retirement account started. Check out our short list of questions to answer first. https://t.co/vMfCM2niLx