Odds Are

As a financial advisor, I’m often asked—by clients, family, and friends—my opinion on current market conditions. Questions about inflation, raising mortgage interest rates, and what to do about the “certain” recession we’re heading into, to name a few. The uncertainty is hard to cope with, and understandably, people want to be prepared.

There are a lot of people who dedicate their time and energy (their lives) trying to predict what’s going to happen next. Some are optimistic, looking for opportunities virtually everyone else will miss. Think Michael Burry, who predicted the 2007 mortgage crisis and personally profited $100 million in the process.

On the flip side, what we hear about most often are the “doom and gloom” predictions. Talking heads and market headlines designed to convince us all that the financial world as we know it is ending and we need to stock up on non-perishables and buy gas masks for every member of our household, pets included.

When I answer questions related to current market conditions, folks are often surprised that I don’t read market headlines or check in on market performance every day. I don’t even check in every week, and that’s because my approach to financial planning isn’t reactionary. I approach financial planning with an understanding of how markets work and faith that they’ll continue to do what they’ve done, which is ebb and flow in the short-term and go up over the long-term.

I like to believe this mindset saves my clients (and myself) a lot of anxiety and grief by blocking out the noise of what’s happening today or what could happen tomorrow, and instead focusing on what’s in our control.

For some ideas of what’s in our control, look back at my article about inflation and the one about staying in your seat. If you keep reading long enough, you’ll begin to see that my opinions and advice generally come back to the same foundational principles.

Remember, odds are you’re gonna be alright.

If you’re focused on what’s in your control and still enjoy commentary about what’s going on in the market right now, my Dentist Advisors peer Jake Elm published an article earlier this week full of references and facts related to all the talk of a recession. I aspire to pull together information and simplify it as well as he does!

Until next time!