financial stagnation

It Goes Up and Down: Some Questions for a Moment Like This

graphic shows "up" and "down" on a chalkboard with checkmarks next to them

The history of the stock market can be summed up pretty well: it goes up and down. As for the future, we cannot know for certain whether it will continue to go up and down—or on what schedule—but it seems reasonable to take the liberty of guessing this whole “up and down” thing may persist.

When things are down 20% from their most recent peak, and we recognize it goes up and down, this may well be as good a time as any to invest.

We might have a recession, but current lower prices already reflect a lower outlook. You could say sentiment is already in the mix, already baked into prices. And anyway, where there’s a recession, there’s surely a recovery to follow.

Do we know the timing? Nope. But we never do. (That’s where the whole up-down thing comes back into focus.)

There is much we do not know, but we have faith that perhaps our guesses may be good enough to get by. We believe, for example, that in the future there is money to be made by companies that meet our needs. We have a hunch we will continue to eat, shop, entertain ourselves, wear clothes, go places, communicate, create, and do all those other things humans tend to do. And we have an opportunity now to invest in companies that could provide those things then.

Clients, some things to consider at such a moment as this:

  • Is there room to start or add to a Roth or IRA?
  • Should some funds in a stable-but-stagnant form perhaps be invested for long-term growth?
  • Would a Roth conversion make sense given these lower prices?

It goes up and down. And when we invest for the long run, we commit to the ups and the downs both. One never knows when the trend will change, just that it very well may.

If it’s time for you to add to long-term holdings, please email us or call the shop—anytime.


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It Goes Up and Down: Some Questions for a Moment Like This 228Main.com Presents: The Best of Leibman Financial Services

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Stagnation

© Can Stock Photo / stevekight

The word stagnant is an adjective used to describe things that are motionless, lifeless, lethargic, slow-moving, inactive or static, like water with no flow to it.

If these kinds of words also describe financial accounts you own, this may be a good time to get things moving. A dormant old 401(k) or too much cash parked in the bank could be in that category. Investments or advisors you don’t understand might be another sign.

A wise person once said that every past market crash looks like an opportunity. We do not have to wait until after the inevitable rebound to treat the current turmoil as an opportunity. It could be a great time to do something about the stagnant pieces of your financial puzzle. Or not. No guarantees.

(We address our communications to clients, but know that we have many eavesdroppers. To them we say, our approach is not for everyone. You can learn a lot about it here at 228Main.com, or in our Twitter or LinkedIn feeds.)

You may need to clean house in your finances or review your plans and planning in light of new information. If we might be able to help, put us to work. It’s what we do.

Clients, if you would like to talk about this or anything else, please email us or call.