Lately, when I have casual conversations about my line of work, I get asked about the economy as a whole and concerns about when the stock market will turn down further or crash. People bring up the flattening yield curve and question the wisdom of investing when the market is up so much over the last 10 years and a recession is right around the corner (or so they think.) It makes sense that people are concerned. The money they have invested, or are thinking about investing, represents not just all the hard work they’ve put in over the years, but their dreams of retiring, traveling and/or passing along something to their kids.
The challenge is that I don’t have a crystal ball (and neither does anyone else!) I’m pretty sure that a recession is coming at some point but whether that’s in 2019 or in 2024, I have no idea. Is the current market volatility a sign that we’re heading for another 10% or even 25% drop? Or is the current correction just a temporary blip on a continual upward trajectory? I really can’t say. My job isn’t about making predictions. It’s about helping people put together a balanced plan based on their unique situation, keeping in mind historical trends while accounting for the inherent uncertainty in the markets and life. As humans, we crave certainty. Learning to live happily despite not knowing what’s around the corner is a challenge for us all.
Here are two articles on the topics above that are worth reading as well as two others I found interesting this month:
A short and entertaining piece on volatility in the market: https://www.collaborativefund.com/blog/when-things-get-wild/
The articles and analysis by Liz Ann Sonders take a data-driven approach and understand the emotional nature of markets: https://www.schwab.com/resource-center/insights/content/outlook-us-stocks-and-economy
I’m an optimist and love uplifting stories since generally our news is skewed heavily to the negative. Enjoy! https://www.theatlantic.com/photo/2018/12/hopeful-images-from-2018/577618/
The Blue Zones research is for anyone who is interested in understanding what factors make up a healthier society as well as changes you can make to improve your health as you age. This article is specific to one city, but the Blue Zones site has lots of other articles and resources: https://www.bluezones.com/2018/12/fort-worth-tx-is-getting-healthier-while-rest-of-country-is-getting-sicker/