Bear Markets: Normal But Not Fun

Turn on CNBC, Fox Business or any other news media and you’re hearing a term that is never any fun and it’s … “bear market.” A bear market refers to when the market drops by 20% or more within a sustained period of time – typically two months or more. Another definition that is used to describe bear markets is when investors are more risk-adverse than risk-seeking. It has been a couple of years since we have seen a bear market which explains the reaction that has spurred from the current state of the market.

Simple, Optimistic, Uncontroversial - 2nd Quarter Update Unworthy For MSM

Even though it’s the demand for negativity in the first place that drives the bulk of the news and information we see all the time, my goal in this quick piece is to give you what is hopefully a nice, quick breather from the typical top headlines and narratives. Inflation is a word that can, and especially now, leave a bad taste in your mouth. Let’s touch on this inflation topic a little bit for the month of April but also point to some other facts:

I-Bonds Vs. Treasury Inflation Protected Securities: What The Difference?

I-Bonds and Treasury Inflation-Protected Securities (TIPS) are investments that offer principal protection. These investments are designated to offer low-risk investment opportunity that also protects purchasing power. In addition, they both have built in features that combat fluctuating inflation rates.  Although they share similarities, these investments contain their own differences in how they are bought, taxed, the difference in their holding periods and many other factors.

Gas Savings: Tips & Tricks

Do the current prices at the gas pump have you contemplating pulling out your old 10 speed bike buried deep in the back part of the garage?

If the thought has crossed your mind recently, I don’t think you would be alone as gas prices have increased drastically in the last few weeks, reaching a national average of $4.28 according to AAA national gas prices on Friday, March 18, 2022. The lowest areas are reporting just below $4.00 a gallon, where the highest areas are coming in near $6.00 a gallon.

Gas. Groceries. And Growing Price Increases.

I’m sure you have seen the rise in gas prices lately. They started out slowly, increasing gradually, but this past few weeks how can you miss the bright red lights showing a price increase as to almost $0.40 to the gallon! Oh, and then the $0.30 increase over night two weeks ago?!?! One contributing factor we can thank for this price increase is inflation. The US Inflation rate in January was 7.5%, which is a 40 year high, the largest move up since 1982.

Incorporating Series I Bonds - Emergency Fund & Cash Positions

If you are currently holding cash that is above the comfort of your emergency fund, you may be stuck in what is called “analysis paralysis”. That is, with extra money to invest, you are holding back as an investor due to uncertainties in markets. A volatile equities market and a low yielding bond market due to low interest rates can do that to you. So, you are keeping money in cash for the time being, all while we are dealing with the highest inflation numbers in 40 years.