1 00:00:00,120 --> 00:00:02,520 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,720 --> 00:00:06,760 Speaker 1: Matt and today we're discussing crashes, corrections in your reaction. 3 00:00:26,440 --> 00:00:29,000 Speaker 1: That's right. And from the title of this episode, you 4 00:00:29,200 --> 00:00:31,160 Speaker 1: may have gathered that we are going to talk about 5 00:00:31,200 --> 00:00:33,840 Speaker 1: the stock market. There's been a lot of news lately. 6 00:00:33,840 --> 00:00:35,920 Speaker 1: There's been a lot of movement in the market recently, 7 00:00:35,960 --> 00:00:38,560 Speaker 1: and so we're going to dedicate an entire episode to 8 00:00:38,880 --> 00:00:43,199 Speaker 1: investing specifically. Yeah, and just kind of when things are haywire, 9 00:00:43,360 --> 00:00:46,280 Speaker 1: like how do we react? And um, I'm sure a 10 00:00:46,280 --> 00:00:49,040 Speaker 1: lot of our listeners are are kind of wondering, well, yeah, 11 00:00:49,080 --> 00:00:51,519 Speaker 1: when the stock market is tanking, like what should I 12 00:00:51,520 --> 00:00:54,800 Speaker 1: be doing or how should I even be thinking about investing? 13 00:00:55,080 --> 00:00:57,320 Speaker 1: And so we got a lot to cover today. That's right, man, 14 00:00:57,360 --> 00:00:59,560 Speaker 1: But first I wanted to share with you. I want 15 00:00:59,600 --> 00:01:01,320 Speaker 1: to here with all of our listeners as well, just 16 00:01:01,360 --> 00:01:04,080 Speaker 1: a quick curb Alert score that I picked up the 17 00:01:04,080 --> 00:01:07,400 Speaker 1: other literally yesterday. So this happened yesterday. Okay, You're always 18 00:01:07,400 --> 00:01:09,840 Speaker 1: finding weird stuff, so I'm curious, and so I mean 19 00:01:10,200 --> 00:01:12,800 Speaker 1: here's literally I'm never on Facebook except for if I'm 20 00:01:12,800 --> 00:01:15,360 Speaker 1: looking to sell an item. Kate's rarely on there, as well, 21 00:01:15,360 --> 00:01:16,959 Speaker 1: but I guess she has some sort of alert set 22 00:01:17,000 --> 00:01:19,000 Speaker 1: up so she knows when there's something that's going to 23 00:01:19,080 --> 00:01:21,840 Speaker 1: be free. That is what we're looking for. This happened yesterday. 24 00:01:22,200 --> 00:01:25,120 Speaker 1: So one of our daughters, ever since she kind of 25 00:01:25,200 --> 00:01:28,440 Speaker 1: graduated and moved up from like the toddler bed, she's 26 00:01:28,440 --> 00:01:31,959 Speaker 1: just been sleeping on a mattress on the floor. And we, 27 00:01:32,120 --> 00:01:34,199 Speaker 1: you know, a few months ago, even has to here like, hey, 28 00:01:34,280 --> 00:01:36,520 Speaker 1: you know, do you want like a real, real bed, 29 00:01:37,000 --> 00:01:38,640 Speaker 1: And she was like, no, I like it on the 30 00:01:38,640 --> 00:01:40,520 Speaker 1: floor because she kind of just like rolls out of 31 00:01:40,520 --> 00:01:42,400 Speaker 1: the bed and like plays with the toys, rolls back 32 00:01:42,400 --> 00:01:46,440 Speaker 1: into bed um. But honestly, lately it's kind of been 33 00:01:46,480 --> 00:01:48,200 Speaker 1: a problem because she just has a lot of stuff 34 00:01:48,360 --> 00:01:50,960 Speaker 1: just kind of scattered all around her bed, all on 35 00:01:51,000 --> 00:01:52,840 Speaker 1: her bed as well, and so we've been keeping an 36 00:01:52,840 --> 00:01:57,000 Speaker 1: eye out for a new bed. One came up on Facebook. 37 00:01:57,000 --> 00:01:59,280 Speaker 1: It was free you know, side of the road deal 38 00:01:59,320 --> 00:02:01,200 Speaker 1: that somebody was giving away and so I will know 39 00:02:01,200 --> 00:02:04,040 Speaker 1: where they're picked it up. Specifically, it had drawers underneath 40 00:02:04,040 --> 00:02:05,720 Speaker 1: the bed as well as like a headboard with some 41 00:02:05,760 --> 00:02:08,640 Speaker 1: shells built into it as well. And so that's all great, right, 42 00:02:08,680 --> 00:02:10,840 Speaker 1: I'm sure you're probably down with that. Here's where it 43 00:02:10,919 --> 00:02:13,840 Speaker 1: gets a little bit hairy. There's also a mattress that 44 00:02:13,880 --> 00:02:16,600 Speaker 1: came with it, and so I wasn't planning to walk 45 00:02:16,639 --> 00:02:18,280 Speaker 1: away with that as well, but I threw it in 46 00:02:18,360 --> 00:02:20,280 Speaker 1: the van and brought it home. I want to know 47 00:02:20,320 --> 00:02:22,480 Speaker 1: from you, do you feel that it is frugal or 48 00:02:22,520 --> 00:02:24,359 Speaker 1: cheap to pick up a free mattress on the side 49 00:02:24,400 --> 00:02:25,680 Speaker 1: of the road, And so I'm done the same thing 50 00:02:25,800 --> 00:02:29,480 Speaker 1: I have. And I literally actually just gave away a mattress, 51 00:02:30,080 --> 00:02:33,320 Speaker 1: h an old mattress because I upgraded finally from used 52 00:02:33,360 --> 00:02:36,720 Speaker 1: mattresses for my kids to like a new mattress for 53 00:02:36,760 --> 00:02:38,480 Speaker 1: the first time in a long time. Or you finally 54 00:02:38,480 --> 00:02:40,600 Speaker 1: gave for them. I think you finally gave away old 55 00:02:40,600 --> 00:02:45,519 Speaker 1: bedbug mattress they were still but and yes, just gave 56 00:02:45,520 --> 00:02:47,720 Speaker 1: it away to sweet neighbors who are who are very thankful. 57 00:02:47,960 --> 00:02:50,880 Speaker 1: But um, yeah, no, I am not against old mattresses, 58 00:02:50,880 --> 00:02:54,080 Speaker 1: and I know some people would be, but I distinctly 59 00:02:54,080 --> 00:02:57,880 Speaker 1: remember getting a used ikea bed with the mattress for 60 00:02:57,960 --> 00:02:59,959 Speaker 1: my daughter. You know, I don't know two years ago 61 00:03:00,000 --> 00:03:02,640 Speaker 1: out and there's a recurring pattern here. It seems like 62 00:03:02,680 --> 00:03:04,560 Speaker 1: other people aren't willing to do this, but it's something 63 00:03:04,560 --> 00:03:07,519 Speaker 1: that you and I are totally willing to do. In fact, 64 00:03:07,680 --> 00:03:09,440 Speaker 1: I was with you when we saw that bed on 65 00:03:09,480 --> 00:03:10,840 Speaker 1: the side of the road. We're getting ready to go 66 00:03:10,880 --> 00:03:14,520 Speaker 1: to a future islands, right, and we hadn't gotten far 67 00:03:14,560 --> 00:03:17,560 Speaker 1: from your house, pulled over through all of the boards, 68 00:03:17,600 --> 00:03:19,840 Speaker 1: the bed, all of it on top of were we 69 00:03:19,880 --> 00:03:21,720 Speaker 1: in my car, like the old station wagon with with 70 00:03:21,800 --> 00:03:23,160 Speaker 1: like the wrap. We threw it on top of the 71 00:03:23,160 --> 00:03:26,760 Speaker 1: car and like reverse it back to your house, took 72 00:03:26,800 --> 00:03:29,079 Speaker 1: it inside before we hear I mean, really like everybody's 73 00:03:29,120 --> 00:03:30,680 Speaker 1: got to draw their own line when it comes to 74 00:03:30,680 --> 00:03:32,800 Speaker 1: frugal achieve right, And so so I think some people 75 00:03:32,800 --> 00:03:36,320 Speaker 1: are gonna say I would these are discussed used mattress, 76 00:03:36,400 --> 00:03:39,040 Speaker 1: you know, like mattresses or something that you spend you know, 77 00:03:39,080 --> 00:03:41,280 Speaker 1: eight eight hours a night on, like you know, a 78 00:03:41,280 --> 00:03:44,240 Speaker 1: third of your life is essentially spent on that mattress 79 00:03:44,280 --> 00:03:46,960 Speaker 1: more if you're a kid, your percentage wise, yeah, exactly, 80 00:03:47,160 --> 00:03:49,200 Speaker 1: And so I get it. But at the same time, 81 00:03:49,680 --> 00:03:51,720 Speaker 1: I think you're still sleeping on a used mattress. You 82 00:03:51,760 --> 00:03:54,400 Speaker 1: and Kate are right totally hand me down. We finally 83 00:03:54,440 --> 00:03:56,560 Speaker 1: upgraded to a Costco mattress I don't know, a year 84 00:03:56,600 --> 00:03:58,880 Speaker 1: and a half, two years ago, and it's been lovely. 85 00:03:59,520 --> 00:04:02,040 Speaker 1: But I say, our hand me down used mattress was 86 00:04:02,160 --> 00:04:04,440 Speaker 1: totally fine. And also, yeah, well that's the thing. I mean, 87 00:04:04,600 --> 00:04:06,240 Speaker 1: I'm not I wouldn't. I think it would be cheap 88 00:04:06,280 --> 00:04:08,760 Speaker 1: if I was not willing to do it to myself, 89 00:04:08,800 --> 00:04:10,960 Speaker 1: but I did it to my kids. That's the thing, 90 00:04:11,040 --> 00:04:12,360 Speaker 1: Like we want to be able to make some of 91 00:04:12,360 --> 00:04:14,680 Speaker 1: these upgrades. But like in our case, like you and 92 00:04:14,720 --> 00:04:17,440 Speaker 1: Emily were like, you know what, we're growing up enough, 93 00:04:17,640 --> 00:04:19,719 Speaker 1: we're big kids. Now we're gonna we're gonna buy a 94 00:04:19,720 --> 00:04:21,920 Speaker 1: new mattress. And we bought one of the online phone 95 00:04:21,960 --> 00:04:24,640 Speaker 1: mattresses that shows up yeah puncture the bag and it 96 00:04:24,960 --> 00:04:27,880 Speaker 1: you know, inflates or whatever. We did not like that mattress, 97 00:04:28,000 --> 00:04:29,919 Speaker 1: and so we tried it for a few weeks until 98 00:04:29,920 --> 00:04:32,320 Speaker 1: finally I said, babe, we're gonna pull down the mattress 99 00:04:32,360 --> 00:04:34,960 Speaker 1: that we shoved up into the attic. Uh. And I'm 100 00:04:35,000 --> 00:04:37,120 Speaker 1: so glad that we did, because I wasn't totally sure 101 00:04:37,600 --> 00:04:39,599 Speaker 1: if if we're going to keep that phone mattress. I 102 00:04:39,640 --> 00:04:41,880 Speaker 1: was like, you know, I don't really, I'm not completely 103 00:04:41,920 --> 00:04:44,520 Speaker 1: convinced because it's a lot firmer. Obviously, it's not contort 104 00:04:44,560 --> 00:04:46,360 Speaker 1: to my body like this one, like the old one is, 105 00:04:46,400 --> 00:04:48,039 Speaker 1: since we've been sleeping on it for so long, and 106 00:04:48,279 --> 00:04:51,600 Speaker 1: I guess whoever's body was is baked into that mattress. 107 00:04:51,640 --> 00:04:54,920 Speaker 1: Now anyway, Well, I'm glad you feel the same way. Still, 108 00:04:54,920 --> 00:04:56,360 Speaker 1: I didn't know if you had, you know, moved on 109 00:04:56,400 --> 00:04:58,960 Speaker 1: in your ways. But obviously, like we looked at the mattress, 110 00:04:59,040 --> 00:05:01,440 Speaker 1: there weren't any gross stains on it. It hadn't rained 111 00:05:01,520 --> 00:05:03,760 Speaker 1: or anything like that, and it was a neighbor as well. Still, 112 00:05:03,880 --> 00:05:05,799 Speaker 1: like I picked it up off the side of interstate 113 00:05:05,880 --> 00:05:08,080 Speaker 1: or something like that, I've forgotten run over a couple 114 00:05:08,080 --> 00:05:09,839 Speaker 1: of times. That might be a different story, for sure. Yeah, 115 00:05:09,920 --> 00:05:12,320 Speaker 1: you definitely wanted to make sure that it's still supportive 116 00:05:12,600 --> 00:05:15,280 Speaker 1: and that it's not completely disgusting or something like that. 117 00:05:15,400 --> 00:05:18,440 Speaker 1: But yeah, I'm okay with used mattresses and um and yeah, 118 00:05:18,680 --> 00:05:21,240 Speaker 1: not everyone has to follow suit, but in our book, 119 00:05:21,320 --> 00:05:23,320 Speaker 1: it is frugal. I'm glad you're done with it. Yeah, 120 00:05:23,360 --> 00:05:24,960 Speaker 1: all right. Alice mentioned the beer that we're having on 121 00:05:24,960 --> 00:05:27,640 Speaker 1: today's episode. This one is called a Force for Good. 122 00:05:27,880 --> 00:05:30,320 Speaker 1: It's an Imperial brown ale by Creature Comforts and Sierra 123 00:05:30,440 --> 00:05:33,960 Speaker 1: Nevada donated to us by listener Nathan. So Nathan thinks, 124 00:05:33,960 --> 00:05:35,640 Speaker 1: so it's right. We'll give our thoughts on this one 125 00:05:35,640 --> 00:05:38,680 Speaker 1: at the end of the episode. But onto the topic 126 00:05:38,720 --> 00:05:40,360 Speaker 1: of hand Matt. This one, we are talking about tick 127 00:05:40,360 --> 00:05:42,680 Speaker 1: it off, the stock market crashes, corrections, and how we're 128 00:05:42,680 --> 00:05:46,599 Speaker 1: supposed to react in kind of turbulent times. And yeah, 129 00:05:46,600 --> 00:05:48,000 Speaker 1: I was as I was thinking about this episode and 130 00:05:48,000 --> 00:05:50,159 Speaker 1: made me think about that time. Um, you remember this 131 00:05:50,200 --> 00:05:51,960 Speaker 1: a few years back when I got hit by a 132 00:05:52,000 --> 00:05:53,719 Speaker 1: car when I was on my bike. I do remember. 133 00:05:53,720 --> 00:05:56,480 Speaker 1: That is uh kind of frightening. I haven't actually really 134 00:05:56,480 --> 00:05:58,120 Speaker 1: thought about it. We can laugh about it now, but 135 00:05:58,520 --> 00:06:01,400 Speaker 1: at the time, remember Emily in particular, I mean I 136 00:06:01,440 --> 00:06:02,599 Speaker 1: was upset. It was not I was like, oh no, 137 00:06:02,680 --> 00:06:05,040 Speaker 1: but she was definitely a little worried about you. Yes, yes, 138 00:06:05,040 --> 00:06:07,560 Speaker 1: for sure. But one of my good friends recently relayed 139 00:06:07,720 --> 00:06:10,839 Speaker 1: that he actually got hit on his bike with his 140 00:06:10,920 --> 00:06:13,279 Speaker 1: son on the back. Fortunately, I just dropped my kids 141 00:06:13,320 --> 00:06:15,160 Speaker 1: off at school and my kids were not on the 142 00:06:15,200 --> 00:06:17,719 Speaker 1: bike when I got hit, but I I dropped my 143 00:06:17,760 --> 00:06:19,920 Speaker 1: kid off as well, because that's back when we were 144 00:06:19,920 --> 00:06:22,400 Speaker 1: doing the bike car pool and luckily both of our 145 00:06:22,480 --> 00:06:24,560 Speaker 1: kids were off of your bike. Exactly I would have 146 00:06:24,600 --> 00:06:28,640 Speaker 1: been pissed and so not my fault. But but here's 147 00:06:28,880 --> 00:06:31,240 Speaker 1: basically he, you know, my friend, he didn't get hit 148 00:06:31,320 --> 00:06:33,560 Speaker 1: terribly hard, but I I got I got smacked a 149 00:06:33,600 --> 00:06:35,800 Speaker 1: little bit, and um really just had like some shoulder 150 00:06:35,839 --> 00:06:38,200 Speaker 1: damage for a couple of months, but I'm okay now 151 00:06:38,240 --> 00:06:41,240 Speaker 1: and no long lasting damage. But what it made me 152 00:06:41,279 --> 00:06:44,800 Speaker 1: think is is that like the lesson you take away 153 00:06:44,880 --> 00:06:47,479 Speaker 1: from an incident like that, like, what is it? Um, 154 00:06:47,880 --> 00:06:49,800 Speaker 1: is it that I should never ride my bike again? 155 00:06:49,960 --> 00:06:52,839 Speaker 1: Because there's a chance circle now there there's a certainty 156 00:06:52,880 --> 00:06:54,479 Speaker 1: that I did get hit, but there's a chance that 157 00:06:54,480 --> 00:06:58,320 Speaker 1: could happening in no. Mostly what I took away was like, 158 00:06:58,360 --> 00:07:00,880 Speaker 1: helmets are great, and bike safety isn't worton, and that 159 00:07:01,040 --> 00:07:03,920 Speaker 1: accident has happened sometimes, right, And so it's just that 160 00:07:04,000 --> 00:07:07,279 Speaker 1: actually getting into that accident made me I had that 161 00:07:07,320 --> 00:07:10,640 Speaker 1: firsthand experience now, right. And so yeah, this recent bout 162 00:07:10,680 --> 00:07:13,560 Speaker 1: of stock market volatility, it might have some of our 163 00:07:13,640 --> 00:07:15,880 Speaker 1: listeners stocking away more money for their future, but I 164 00:07:15,880 --> 00:07:17,920 Speaker 1: think it's been unnerving for others. And I think it's 165 00:07:18,120 --> 00:07:21,720 Speaker 1: important folks if they're if they're especially younger, and they 166 00:07:21,720 --> 00:07:25,000 Speaker 1: haven't experienced some of these bouts of market volatility, they've 167 00:07:25,080 --> 00:07:27,080 Speaker 1: kind of seen the stock market just kind of going up, 168 00:07:27,120 --> 00:07:29,520 Speaker 1: it's been on its hair. Um, it's important for us 169 00:07:29,560 --> 00:07:32,600 Speaker 1: to hopefully give them some reassurance, give them some guidance 170 00:07:32,880 --> 00:07:34,800 Speaker 1: in the wake of kind of what's been happening, um 171 00:07:35,000 --> 00:07:37,880 Speaker 1: at least you know since the beginning of January this year, 172 00:07:38,160 --> 00:07:40,040 Speaker 1: that's right. Yeah, so we're gonna give our thoughts on 173 00:07:40,080 --> 00:07:43,560 Speaker 1: how to react when the market is experiencing this extra turbulence, 174 00:07:44,000 --> 00:07:45,680 Speaker 1: because yeah, you know, the same can be true when 175 00:07:45,680 --> 00:07:47,560 Speaker 1: it comes to investing in the stock market. Like we 176 00:07:47,680 --> 00:07:50,920 Speaker 1: know that occasionally they're going to be corrections, but until 177 00:07:50,920 --> 00:07:54,440 Speaker 1: we actually experience those downturns ourselves firsthand, just just like 178 00:07:54,480 --> 00:07:57,200 Speaker 1: you didn't by getting hit with a car firsthand, and 179 00:07:57,240 --> 00:07:59,360 Speaker 1: we're not totally sure how we're going to react until 180 00:07:59,360 --> 00:08:01,560 Speaker 1: we're faced with us situations. Uh. And so, just like 181 00:08:01,560 --> 00:08:02,960 Speaker 1: when it comes to biking, we know that there's a 182 00:08:03,040 --> 00:08:05,760 Speaker 1: chance we could get knocked off our bikes or run 183 00:08:05,800 --> 00:08:08,360 Speaker 1: off the road by a driver, but it's a completely 184 00:08:08,360 --> 00:08:11,640 Speaker 1: different thing to go through an ordeal like that ourselves 185 00:08:11,680 --> 00:08:15,000 Speaker 1: just our emotions are feelings, they are a really complex 186 00:08:15,040 --> 00:08:17,920 Speaker 1: side of our humanity, and we never quite know when 187 00:08:18,040 --> 00:08:21,040 Speaker 1: fear is going to rear its ugly head, causing us 188 00:08:21,040 --> 00:08:25,080 Speaker 1: to potentially doing something that we wouldn't normally consider. Oftentimes, 189 00:08:25,160 --> 00:08:27,480 Speaker 1: when we're not in those situations, we know the right 190 00:08:27,520 --> 00:08:29,520 Speaker 1: things that we should be doing. But again, when we're 191 00:08:29,520 --> 00:08:33,400 Speaker 1: thrust into those situations, when the quartosol levels spike, when 192 00:08:33,440 --> 00:08:36,200 Speaker 1: we feel stressed and our emotions run rampant, that's when 193 00:08:36,240 --> 00:08:38,120 Speaker 1: we can make those poor decisions, right, Yeah, I mean, 194 00:08:38,160 --> 00:08:40,520 Speaker 1: I guess there's the there's the philosophy, the old school 195 00:08:40,559 --> 00:08:42,600 Speaker 1: philosophy of getting right back on the horse after it 196 00:08:42,640 --> 00:08:46,000 Speaker 1: knocks you off right. And I actually felt really similarly 197 00:08:46,040 --> 00:08:48,440 Speaker 1: about getting on back on a bike really quickly after 198 00:08:48,480 --> 00:08:50,960 Speaker 1: my accident. I was like, the longer I wait, the 199 00:08:50,960 --> 00:08:53,200 Speaker 1: longer I let it linger in my brain, the more 200 00:08:53,280 --> 00:08:55,120 Speaker 1: fear is going to build up. And I think the 201 00:08:55,160 --> 00:08:57,199 Speaker 1: same is true for all for all of us, really, 202 00:08:57,240 --> 00:09:00,440 Speaker 1: is that we have to when we experience something you know, difficult, 203 00:09:00,440 --> 00:09:03,199 Speaker 1: potentially even traumatic, it's usually best to get right back 204 00:09:03,240 --> 00:09:05,880 Speaker 1: on the horse so that we can mentally get accustomed 205 00:09:05,880 --> 00:09:08,920 Speaker 1: to the reality that that you know, bike accidents don't 206 00:09:08,960 --> 00:09:10,920 Speaker 1: happen every day, and so yeah, well, how do we 207 00:09:10,920 --> 00:09:13,440 Speaker 1: get past this? Well, part of it at least is 208 00:09:13,760 --> 00:09:16,440 Speaker 1: we would say looking towards the past. You know, just 209 00:09:16,640 --> 00:09:19,520 Speaker 1: like one bike accident doesn't determine how I think about 210 00:09:19,520 --> 00:09:21,199 Speaker 1: the role that my bike plays in my life. I've 211 00:09:21,200 --> 00:09:25,400 Speaker 1: had many hundreds of great bike rides since then. Neither 212 00:09:25,520 --> 00:09:28,240 Speaker 1: does the last month of data, right, just the most 213 00:09:28,280 --> 00:09:31,560 Speaker 1: recent sample size, right, because it's it's too small of 214 00:09:31,559 --> 00:09:34,480 Speaker 1: a sample size to make decisions based on. And this 215 00:09:34,559 --> 00:09:39,280 Speaker 1: is a cognitive psychology term, and it's called recency bias. Basically, 216 00:09:39,320 --> 00:09:42,839 Speaker 1: when we're overly focused on what has just happened as 217 00:09:42,840 --> 00:09:46,480 Speaker 1: opposed to looking at longer term historical facts, reality on 218 00:09:46,520 --> 00:09:49,440 Speaker 1: the ground for decades. We have to take in more 219 00:09:49,520 --> 00:09:51,600 Speaker 1: data and we have to look at what else is true. 220 00:09:51,960 --> 00:09:55,080 Speaker 1: That's a crucial element to not letting headlines and just 221 00:09:55,240 --> 00:09:58,640 Speaker 1: incredibly recent market moves literally what happened in January right 222 00:09:58,640 --> 00:10:01,080 Speaker 1: send us into a panic. To in the fuller picture, 223 00:10:01,360 --> 00:10:04,800 Speaker 1: not just this shortened time frame is really key. It's 224 00:10:04,800 --> 00:10:08,080 Speaker 1: really crucial to helping us make better decisions. Yeah, it's right, 225 00:10:08,120 --> 00:10:10,200 Speaker 1: you can't just look at that truncated timeline. And when 226 00:10:10,240 --> 00:10:13,280 Speaker 1: it comes to investing, oftentimes, what this looks like is momentum. Right, 227 00:10:13,679 --> 00:10:15,760 Speaker 1: we see the market on a t hair it's climbing, 228 00:10:15,760 --> 00:10:17,840 Speaker 1: and we think it's never gonna stop, and so you 229 00:10:17,880 --> 00:10:20,439 Speaker 1: continue to invest because you expect it to continue to 230 00:10:20,480 --> 00:10:22,280 Speaker 1: go up. Or on the opposite side of the coin 231 00:10:22,320 --> 00:10:25,120 Speaker 1: as well, if you see the market tanking, you think, okay, well, 232 00:10:25,320 --> 00:10:27,120 Speaker 1: I'm definitely not gonna invest now because the market is 233 00:10:27,120 --> 00:10:29,360 Speaker 1: only going to continue to drop, and so we might 234 00:10:29,360 --> 00:10:31,959 Speaker 1: be hesitant to get started investing. But once we are 235 00:10:31,960 --> 00:10:34,480 Speaker 1: doing something, that momentum can cause us to continue to 236 00:10:34,559 --> 00:10:37,319 Speaker 1: make decisions that may not be the best and this 237 00:10:37,600 --> 00:10:41,320 Speaker 1: also can look like investing with our hearts instead of 238 00:10:41,360 --> 00:10:43,439 Speaker 1: investing with our heads. Right, when we let our emotions 239 00:10:43,480 --> 00:10:46,160 Speaker 1: control our decisions, that's when we're bound to make more 240 00:10:46,200 --> 00:10:49,800 Speaker 1: mistakes compared to when we use knowledge and data. So 241 00:10:49,880 --> 00:10:51,760 Speaker 1: let's get specific here, Let's talk about some of the data. 242 00:10:51,920 --> 00:10:54,720 Speaker 1: Let's look at what history has to teach us, because 243 00:10:54,760 --> 00:10:56,960 Speaker 1: the short term it couldn't be more different than the 244 00:10:56,960 --> 00:10:59,480 Speaker 1: long term. When we're talking about the stock market downward 245 00:10:59,520 --> 00:11:03,160 Speaker 1: moves of five or timber actually happened almost every year 246 00:11:03,280 --> 00:11:05,600 Speaker 1: in the stock market. And seriously, a market that's down 247 00:11:05,800 --> 00:11:09,760 Speaker 1: five percent from it's high that happens in of all 248 00:11:09,840 --> 00:11:13,440 Speaker 1: years almost always literally, yeah, it literally almost always. Uh, 249 00:11:13,440 --> 00:11:17,040 Speaker 1: and a tim percent drop that actually happens of the time, 250 00:11:17,400 --> 00:11:20,319 Speaker 1: and so this is at least heartening. Downturns like what 251 00:11:20,360 --> 00:11:24,079 Speaker 1: we have recently experienced actually occur pretty regularly. We shouldn't 252 00:11:24,080 --> 00:11:26,560 Speaker 1: be afraid of those. Yeah, I think that is a 253 00:11:26,640 --> 00:11:30,920 Speaker 1: really important thing to recognize. Is well, okay, it is 254 00:11:30,960 --> 00:11:33,319 Speaker 1: it's an aberration. Is this something something that's not normal 255 00:11:33,360 --> 00:11:35,600 Speaker 1: that I'm experiencing. If so, I feel like I'm at 256 00:11:35,760 --> 00:11:38,160 Speaker 1: greater risk. But when we know that this is a 257 00:11:38,200 --> 00:11:41,280 Speaker 1: normal thing that happens regularly, almost every year, it can 258 00:11:41,280 --> 00:11:43,520 Speaker 1: be really helpful from a mental standpoint. And man, I 259 00:11:43,600 --> 00:11:46,000 Speaker 1: liking it to kind of uh, maybe let's say you're 260 00:11:46,040 --> 00:11:47,720 Speaker 1: going in to get a shot, or you're taking your 261 00:11:47,800 --> 00:11:49,760 Speaker 1: kids into get a shot. A you're getting the pep 262 00:11:49,760 --> 00:11:52,480 Speaker 1: talk ahead of time that hey, this shot is gonna hurt. 263 00:11:52,760 --> 00:11:55,520 Speaker 1: So when they go in knowing that this shot is 264 00:11:55,559 --> 00:11:58,720 Speaker 1: going to hurt, it's helpefully. It's supposed to help them 265 00:11:58,760 --> 00:12:00,840 Speaker 1: to freak out less, right, like give them kind of 266 00:12:00,880 --> 00:12:03,480 Speaker 1: like here, here's here's the scenario. Here's how it's gonna happen. 267 00:12:03,720 --> 00:12:06,160 Speaker 1: Here's where you're gonna get the shot in your left 268 00:12:06,280 --> 00:12:09,240 Speaker 1: arm right here, and like it's gonna be painful for 269 00:12:09,320 --> 00:12:11,560 Speaker 1: just a minute and then it's gonna be over. You're 270 00:12:11,559 --> 00:12:15,240 Speaker 1: preparing them for this scenario. And if you just like 271 00:12:15,320 --> 00:12:18,640 Speaker 1: sat them down and you didn't prepare them and you 272 00:12:18,720 --> 00:12:20,640 Speaker 1: just jabbed a needle in their arm, though there's a 273 00:12:20,720 --> 00:12:23,400 Speaker 1: there's a whole lot more likelihood of like an insane 274 00:12:23,400 --> 00:12:25,319 Speaker 1: freak out right, And it doesn't mean that there's not 275 00:12:25,360 --> 00:12:28,120 Speaker 1: gonna be tears, even though you've kind of um, you've 276 00:12:28,160 --> 00:12:30,160 Speaker 1: told your kids exactly what's going to happen in this 277 00:12:30,160 --> 00:12:33,920 Speaker 1: scenario and hurt. Yeah it is. And so but that 278 00:12:34,000 --> 00:12:37,920 Speaker 1: warning and knowing the context for forgetting that shot is 279 00:12:38,320 --> 00:12:40,000 Speaker 1: is gonna help. It's gonna be helpful, and it's gonna 280 00:12:40,000 --> 00:12:43,760 Speaker 1: prevent potentially even worst damage of of a kid freaking 281 00:12:43,760 --> 00:12:46,320 Speaker 1: out by getting a shot in their arm without knowing 282 00:12:46,320 --> 00:12:47,880 Speaker 1: what's coming. I don't want to think about that, like 283 00:12:47,920 --> 00:12:49,400 Speaker 1: if you were to jerk your arm away like when 284 00:12:49,440 --> 00:12:52,920 Speaker 1: you saw the needle, like getting ready to Yeah, I 285 00:12:52,960 --> 00:12:55,640 Speaker 1: want to freak people out right to be some bad 286 00:12:55,640 --> 00:12:58,280 Speaker 1: side effects. I guess the one thing is is if 287 00:12:58,280 --> 00:13:00,440 Speaker 1: that if you were there and you can force your kids, right, 288 00:13:00,480 --> 00:13:02,040 Speaker 1: if they're freaking out and you can force them. But 289 00:13:02,080 --> 00:13:04,400 Speaker 1: here's the thing. We are all adults. We have control 290 00:13:04,480 --> 00:13:07,280 Speaker 1: over our own holdings in our own portfolios. There is 291 00:13:07,360 --> 00:13:11,080 Speaker 1: nobody there necessarily to hold you down and keep you 292 00:13:11,120 --> 00:13:13,640 Speaker 1: from from clicking that cell button. Right. Yeah, but I 293 00:13:13,640 --> 00:13:18,160 Speaker 1: think that knowing that stock market drama is normal. Right, 294 00:13:18,280 --> 00:13:20,959 Speaker 1: It's as normal as for as it being painful when 295 00:13:20,960 --> 00:13:23,559 Speaker 1: you get a shot, but quickly painful. And so yeah, 296 00:13:23,600 --> 00:13:26,959 Speaker 1: as as we're looking at this historical data, right, as 297 00:13:27,000 --> 00:13:29,160 Speaker 1: we as we know the truth going in to to 298 00:13:29,240 --> 00:13:32,680 Speaker 1: get that shot, it's gonna help us better absorb the shot. Well, 299 00:13:32,800 --> 00:13:35,160 Speaker 1: I think it's gonna better be able to help us 300 00:13:35,200 --> 00:13:37,760 Speaker 1: absorb something like what happened in January, where we saw 301 00:13:38,120 --> 00:13:40,920 Speaker 1: stock market experience a whole lot of valatility um and 302 00:13:40,960 --> 00:13:42,840 Speaker 1: we saw, you know a lot of people saw their 303 00:13:42,880 --> 00:13:45,760 Speaker 1: their overall stock holding stop by something like ten percent, 304 00:13:45,840 --> 00:13:49,040 Speaker 1: maybe more, depending on how heavily they were invested in 305 00:13:49,120 --> 00:13:53,000 Speaker 1: let's say um tech companies, right, and so yeah, that 306 00:13:53,280 --> 00:13:55,760 Speaker 1: was them getting a shot like it was painful, and 307 00:13:55,760 --> 00:13:57,800 Speaker 1: it does happen from time to time. But having that 308 00:13:57,880 --> 00:14:00,000 Speaker 1: knowledge and knowing that this is for your ultimate good 309 00:14:00,000 --> 00:14:02,400 Speaker 1: good is what you need to remind yourself of. Just 310 00:14:02,480 --> 00:14:04,600 Speaker 1: like when we see these corrections, we know that ultimately 311 00:14:04,679 --> 00:14:06,480 Speaker 1: these you know, this is going to turn around. Yeah, 312 00:14:06,480 --> 00:14:10,080 Speaker 1: these corrections don't last forever, right, And so some some 313 00:14:10,240 --> 00:14:12,360 Speaker 1: of sometimes we do have a prolonged bear market. We 314 00:14:12,400 --> 00:14:15,080 Speaker 1: might have multiple years in a row where the stock 315 00:14:15,120 --> 00:14:18,720 Speaker 1: market is actually not gaining ground, where where you've actually 316 00:14:18,720 --> 00:14:21,600 Speaker 1: lost money in your investments for multiple years on end. 317 00:14:22,040 --> 00:14:24,640 Speaker 1: But most of the time, much of the time, we 318 00:14:24,720 --> 00:14:27,440 Speaker 1: see these corrections being actually fairly quick. I mean, take 319 00:14:28,360 --> 00:14:30,400 Speaker 1: for instance, we see that I saw that drop in March, 320 00:14:30,720 --> 00:14:32,920 Speaker 1: and how quickly did a rebound that was a V 321 00:14:33,000 --> 00:14:36,400 Speaker 1: shaped recovery, and that was that was almost instantaneous, and 322 00:14:36,440 --> 00:14:38,600 Speaker 1: so I I yeah, But looking to that history and 323 00:14:38,640 --> 00:14:40,840 Speaker 1: seeing what's happened over the past decades, I think can 324 00:14:41,000 --> 00:14:43,080 Speaker 1: can help you realize when you zoom out and look 325 00:14:43,120 --> 00:14:46,120 Speaker 1: at the bigger picture, we can't expect the stock market 326 00:14:46,160 --> 00:14:49,360 Speaker 1: to continue to go up even though there are setbacks 327 00:14:49,400 --> 00:14:51,120 Speaker 1: on the way, That's right. Yeah, And so we share 328 00:14:51,160 --> 00:14:54,320 Speaker 1: this because past is prologue, right, These historical markers and 329 00:14:54,600 --> 00:14:57,320 Speaker 1: data that we can glean from the past, they inform 330 00:14:57,400 --> 00:14:59,880 Speaker 1: what we do today. Knowing the past, it can help 331 00:14:59,880 --> 00:15:02,280 Speaker 1: you understand the present, and it helps us to make 332 00:15:02,320 --> 00:15:04,840 Speaker 1: better choices. Uh, you know, while we're here in the 333 00:15:04,880 --> 00:15:07,520 Speaker 1: here now. But simultaneously, you know, it is important to 334 00:15:07,560 --> 00:15:10,200 Speaker 1: take that with a grain of salt, because who knows 335 00:15:10,240 --> 00:15:12,600 Speaker 1: what the actual future is going to hold. Uh. This 336 00:15:12,680 --> 00:15:16,080 Speaker 1: is why on any prospectus that you see or any investment, 337 00:15:16,280 --> 00:15:18,960 Speaker 1: they always say that past performance is not indicative of 338 00:15:19,000 --> 00:15:22,240 Speaker 1: future results because there's no promise, there's no guarantee that 339 00:15:22,280 --> 00:15:24,760 Speaker 1: your investments will continue to grow at least at the 340 00:15:24,840 --> 00:15:26,440 Speaker 1: rate that you have seen them grow in the past. 341 00:15:26,760 --> 00:15:29,520 Speaker 1: But we are able to make informed decisions with the 342 00:15:29,520 --> 00:15:31,520 Speaker 1: information that we have, and so we're actually going to 343 00:15:31,600 --> 00:15:35,280 Speaker 1: talk more about making these informed decisions in the here now, 344 00:15:35,320 --> 00:15:37,480 Speaker 1: and we're gonna get to that right after this break. 345 00:15:46,640 --> 00:15:49,240 Speaker 1: All right, now that we have some factual information about 346 00:15:49,280 --> 00:15:51,800 Speaker 1: the past, now that we kind of see that these 347 00:15:51,840 --> 00:15:55,480 Speaker 1: corrections are regular, they happen almost every year, and that 348 00:15:55,760 --> 00:15:58,160 Speaker 1: a ten percent drop in the stock market like what 349 00:15:58,240 --> 00:16:00,840 Speaker 1: happened in January, that's not that's an not abnormal, and 350 00:16:00,880 --> 00:16:03,760 Speaker 1: in fact, that is more normal than not. Now that 351 00:16:03,800 --> 00:16:05,520 Speaker 1: we have seen kind of some of what happens in 352 00:16:05,520 --> 00:16:07,920 Speaker 1: the past, I think that can help us better assess 353 00:16:08,000 --> 00:16:11,120 Speaker 1: what's happening in the present. You know, we we believe 354 00:16:11,160 --> 00:16:13,720 Speaker 1: that a big part of making wise decisions is just 355 00:16:13,880 --> 00:16:16,680 Speaker 1: being informed. It's hard to make a smart decision if 356 00:16:16,720 --> 00:16:19,040 Speaker 1: you don't have much information on your side. Right, That's 357 00:16:19,040 --> 00:16:21,680 Speaker 1: where you can get lucky, But that is not a 358 00:16:21,680 --> 00:16:25,200 Speaker 1: solid model or basis for continuing to make smart decisions 359 00:16:25,200 --> 00:16:26,600 Speaker 1: in the future. Right. It makes me think about a 360 00:16:26,600 --> 00:16:29,400 Speaker 1: recent dish washer purchase I had to make, and it was, 361 00:16:29,760 --> 00:16:32,040 Speaker 1: you know, my my old one failed on me. And 362 00:16:32,320 --> 00:16:35,560 Speaker 1: I went to Consumer Reports, which does a great job. Basically, 363 00:16:35,600 --> 00:16:38,120 Speaker 1: they just gather a ton of data from a bunch 364 00:16:38,160 --> 00:16:41,120 Speaker 1: of people and then they provide rankings based on all 365 00:16:41,160 --> 00:16:43,560 Speaker 1: this data they gather. And so it was clear to 366 00:16:43,600 --> 00:16:47,640 Speaker 1: me reading the Consumer Reports rankings that a Bosch dishwasher 367 00:16:48,160 --> 00:16:50,280 Speaker 1: was clearly the way to go, because they rank like 368 00:16:50,360 --> 00:16:52,520 Speaker 1: out of the top twenty. I mean, they're like ten 369 00:16:52,600 --> 00:16:55,040 Speaker 1: of the units basically like the top ten, right, And 370 00:16:55,040 --> 00:16:56,600 Speaker 1: so I was like, well, clearly, this is what I'm 371 00:16:56,600 --> 00:16:59,040 Speaker 1: gonna go with and so, um, yeah, once you have 372 00:16:59,360 --> 00:17:02,000 Speaker 1: some of that data, once you are informed, you can 373 00:17:02,080 --> 00:17:04,560 Speaker 1: make a better decision because if you're flying blind, you know, 374 00:17:04,640 --> 00:17:07,119 Speaker 1: you might pick the worst dishwasher on the shelf and 375 00:17:07,200 --> 00:17:09,480 Speaker 1: it might break in two or three years, um. And 376 00:17:09,520 --> 00:17:11,119 Speaker 1: so yeah, to that end, we're going to define some 377 00:17:11,200 --> 00:17:14,159 Speaker 1: terms real quick, because we try to avoid jargon on 378 00:17:14,200 --> 00:17:16,520 Speaker 1: the show as much as possible. But it's gonna be 379 00:17:16,680 --> 00:17:19,679 Speaker 1: helpful to know just a few things since they're going 380 00:17:19,720 --> 00:17:22,440 Speaker 1: to come up quite a bit in this episode. And yeah, 381 00:17:22,480 --> 00:17:25,040 Speaker 1: it can also be helpful to know some of these 382 00:17:25,119 --> 00:17:28,760 Speaker 1: terms because we will most definitely experience all of these 383 00:17:28,800 --> 00:17:32,320 Speaker 1: at some point during our investing lifetimes. So, for example, 384 00:17:32,320 --> 00:17:34,520 Speaker 1: if you don't know what a bear market is, then 385 00:17:34,560 --> 00:17:36,680 Speaker 1: you might hear that term being thrown around and you 386 00:17:36,760 --> 00:17:38,199 Speaker 1: might think it's the end of the world. You might 387 00:17:38,240 --> 00:17:41,200 Speaker 1: be truly frightened or panics because you hear that term 388 00:17:41,240 --> 00:17:43,760 Speaker 1: not knowing what it actually means. Or or you might 389 00:17:43,800 --> 00:17:47,400 Speaker 1: hear someone say that the stock market is crashing, but 390 00:17:47,960 --> 00:17:50,800 Speaker 1: in reality, what you're experiencing is just a correction. And 391 00:17:50,840 --> 00:17:53,560 Speaker 1: so it might be other people misusing terms and knowing 392 00:17:54,200 --> 00:17:56,480 Speaker 1: what these terms actually mean. Is going to help you 393 00:17:56,840 --> 00:18:00,800 Speaker 1: to filter out the noise from what's actually real exactly. Yeah, 394 00:18:00,800 --> 00:18:02,520 Speaker 1: it can help you to create your own narrative as 395 00:18:02,520 --> 00:18:04,520 Speaker 1: to what is truly happening. And so, yeah, Je, you 396 00:18:04,560 --> 00:18:07,080 Speaker 1: mentioned corrections, So let's start with that. That'll be our 397 00:18:07,119 --> 00:18:10,040 Speaker 1: first term. Uh, And this is when the market drops 398 00:18:10,040 --> 00:18:13,320 Speaker 1: by at least ten percent, that is a correction. Once 399 00:18:13,359 --> 00:18:16,120 Speaker 1: it hits that down by ten percent point, folks say 400 00:18:16,119 --> 00:18:19,200 Speaker 1: that the market has entered into correction territory. That tend 401 00:18:19,280 --> 00:18:22,200 Speaker 1: to you know, nineteen point nine percent, I guess, uh. 402 00:18:22,240 --> 00:18:24,640 Speaker 1: And so that's exactly what we experienced last month when 403 00:18:24,640 --> 00:18:27,600 Speaker 1: the market dropped from highs early in the month down 404 00:18:27,600 --> 00:18:31,159 Speaker 1: to where it bottomed out around January. And also it's 405 00:18:31,200 --> 00:18:34,160 Speaker 1: worth pointing out that this isn't like an officially recognized definition. 406 00:18:34,200 --> 00:18:36,879 Speaker 1: It's what most folks are talking about. But at the 407 00:18:36,920 --> 00:18:38,520 Speaker 1: same time, it's not a term that's like etched in 408 00:18:38,640 --> 00:18:40,960 Speaker 1: stone where somebody, I mean, just like you said, some 409 00:18:41,000 --> 00:18:43,280 Speaker 1: folks might be using this term to describe something else. 410 00:18:43,480 --> 00:18:45,680 Speaker 1: And so it's helpful to understand what most people are 411 00:18:45,680 --> 00:18:48,159 Speaker 1: referring to when they say correction, and it's helpful for 412 00:18:48,200 --> 00:18:50,480 Speaker 1: you to understand what the market is actually going through. 413 00:18:50,520 --> 00:18:53,080 Speaker 1: I think that's actually a really helpful term as well, right, 414 00:18:53,080 --> 00:18:57,920 Speaker 1: because when you a correction seems like something small but meaningful, 415 00:18:58,240 --> 00:19:00,359 Speaker 1: and like, I have to correct my kids things all 416 00:19:00,400 --> 00:19:02,240 Speaker 1: the time. It doesn't mean they're bad kids, but they 417 00:19:02,280 --> 00:19:05,439 Speaker 1: still need to be taught to be civilized humans. So 418 00:19:05,480 --> 00:19:07,080 Speaker 1: I think correct them on little things here and there 419 00:19:07,119 --> 00:19:10,280 Speaker 1: doesn't mean that they're beyond repair. Exactly a little bit 420 00:19:10,280 --> 00:19:12,640 Speaker 1: of guidance, a little correction. That correction is part of, 421 00:19:12,880 --> 00:19:16,160 Speaker 1: you know, helping them grow up into being better citizens. 422 00:19:16,440 --> 00:19:18,359 Speaker 1: And so I think, yeah, a correction is kind of 423 00:19:18,359 --> 00:19:20,280 Speaker 1: one of those things where it's it's a helpful term 424 00:19:20,320 --> 00:19:22,720 Speaker 1: to know because that ten percent drop it doesn't mean 425 00:19:22,800 --> 00:19:26,960 Speaker 1: that stocks or your portfolio are getting slaughtered. It means 426 00:19:26,960 --> 00:19:29,639 Speaker 1: that there's just this like minor thing that happened. And 427 00:19:29,680 --> 00:19:31,800 Speaker 1: knowing that a correction is a timber cent drop can 428 00:19:31,840 --> 00:19:35,480 Speaker 1: help you kind of mentally frame what's happening. And let's 429 00:19:35,480 --> 00:19:38,399 Speaker 1: talk about bear markets too, because there's not like a 430 00:19:38,400 --> 00:19:41,840 Speaker 1: government agency that's defined exactly what constitutes a bear market, 431 00:19:42,240 --> 00:19:45,640 Speaker 1: but generally speaking, it's when the market sees the decline 432 00:19:45,800 --> 00:19:49,960 Speaker 1: of at least from recent highs. This is obviously a 433 00:19:50,040 --> 00:19:52,520 Speaker 1: much larger drop, and so of course we see we 434 00:19:52,560 --> 00:19:55,520 Speaker 1: see fewer of these. But in addition to the cold 435 00:19:55,520 --> 00:19:57,720 Speaker 1: heart facts and the numbers that are associated with a 436 00:19:57,760 --> 00:20:01,600 Speaker 1: bear market, oftentimes investors sent ament is pretty low as well. 437 00:20:01,880 --> 00:20:05,800 Speaker 1: You know, naturally, if investors see their portfolio significantly drop, 438 00:20:06,040 --> 00:20:08,800 Speaker 1: they're likely going to be bummed out. So a bear 439 00:20:08,920 --> 00:20:12,119 Speaker 1: market can be a technical analysis, but it can also 440 00:20:12,480 --> 00:20:16,080 Speaker 1: be used to describe how investors are are feeling. They're 441 00:20:16,280 --> 00:20:20,120 Speaker 1: feeling lacks of daisical, they're feeling like their portfolio. It's 442 00:20:20,119 --> 00:20:22,840 Speaker 1: that overall investor sentiment. Yeah, and so yeah, it goes 443 00:20:22,920 --> 00:20:26,200 Speaker 1: beyond just a correction. It's deeper than that. It's more 444 00:20:26,240 --> 00:20:28,639 Speaker 1: significant than that. That affects not just the numbers on 445 00:20:28,680 --> 00:20:30,800 Speaker 1: the screen you see when you log into to check 446 00:20:30,800 --> 00:20:33,480 Speaker 1: out your investment account, but it also affects how people 447 00:20:33,520 --> 00:20:36,080 Speaker 1: are feeling about the stock market too, exactly. When you 448 00:20:36,160 --> 00:20:37,680 Speaker 1: use it that way, it's more of a squishy term 449 00:20:37,720 --> 00:20:41,080 Speaker 1: as opposed to a quantitative, very measurable term. It's like, like, 450 00:20:41,160 --> 00:20:43,200 Speaker 1: how bad of the is the bear market? It's like, well, 451 00:20:43,480 --> 00:20:46,000 Speaker 1: it's pretty bad. It's like, okay, that's not a very 452 00:20:46,040 --> 00:20:48,359 Speaker 1: technical analysis, which is which is why I think people 453 00:20:48,400 --> 00:20:50,800 Speaker 1: get confused about the terms, and because they are kind 454 00:20:50,800 --> 00:20:52,520 Speaker 1: of confusing and they and there are a lot of 455 00:20:52,520 --> 00:20:54,960 Speaker 1: people who misuse them, and so, um, I think we 456 00:20:55,040 --> 00:20:57,200 Speaker 1: just have to do our best to know what's happening. 457 00:20:57,359 --> 00:20:59,439 Speaker 1: And so, yeah, it can be hard to see the 458 00:20:59,440 --> 00:21:03,400 Speaker 1: headlines when they're not necessarily reflective of what's actually happening exactly. 459 00:21:03,400 --> 00:21:05,239 Speaker 1: And obviously we're going to do our best to make 460 00:21:05,240 --> 00:21:07,120 Speaker 1: sure that we are going to continue to be consistent 461 00:21:07,119 --> 00:21:08,920 Speaker 1: when we use these terms, not only you know, during 462 00:21:08,920 --> 00:21:11,320 Speaker 1: this episode, but just moving forward as well. Uh. And 463 00:21:11,320 --> 00:21:13,439 Speaker 1: then so you mentioned the bear market. Finally we have 464 00:21:13,480 --> 00:21:16,040 Speaker 1: stock market crashes and again there you know, there's not 465 00:21:16,080 --> 00:21:19,520 Speaker 1: a super specific threshold here, because some folks will use 466 00:21:19,560 --> 00:21:22,199 Speaker 1: that term to describe the market just as it's quickly dropping. 467 00:21:22,280 --> 00:21:23,880 Speaker 1: You know, they might say, like, oh, the market has 468 00:21:23,880 --> 00:21:25,960 Speaker 1: down double digits, is crashing. It might be like a 469 00:21:26,000 --> 00:21:28,920 Speaker 1: one day crash. It was down, it was like crash. Yeah, 470 00:21:29,640 --> 00:21:31,680 Speaker 1: But from a again from a technical point of view, 471 00:21:31,680 --> 00:21:33,520 Speaker 1: who we like to say that a market crashes when 472 00:21:33,560 --> 00:21:36,560 Speaker 1: prices have dropped by at least thirty percent, so we 473 00:21:36,640 --> 00:21:41,399 Speaker 1: get ten ten percent correction, bear market, the crash and 474 00:21:41,520 --> 00:21:43,480 Speaker 1: This might sound super scary, you know, it might keep 475 00:21:43,520 --> 00:21:45,720 Speaker 1: some folks from investing, but again, let's get back to 476 00:21:45,720 --> 00:21:48,600 Speaker 1: the data. In the past hundred years, the stock market 477 00:21:48,640 --> 00:21:51,560 Speaker 1: has only experienced a crash of thirty percent or more 478 00:21:51,760 --> 00:21:55,280 Speaker 1: during only ten percent of all years, So relatively speaking, 479 00:21:55,320 --> 00:21:57,400 Speaker 1: they're very rare. Although we did just you know, most 480 00:21:57,440 --> 00:22:00,359 Speaker 1: recently experienced the Corona crash, and so attempting to avoid 481 00:22:00,480 --> 00:22:02,919 Speaker 1: losing of your money in a crash that is going 482 00:22:02,960 --> 00:22:05,240 Speaker 1: to be a bad reason to avoid investing in the 483 00:22:05,240 --> 00:22:08,440 Speaker 1: stock market altogether, especially to when you consider that half 484 00:22:08,520 --> 00:22:11,240 Speaker 1: of the worst draw downs that the market's experienced over 485 00:22:11,240 --> 00:22:13,600 Speaker 1: the past nearly hundred years, half of them happened in 486 00:22:13,640 --> 00:22:16,800 Speaker 1: the thirties around the Great Depression. Yeah. Yeah, no, And 487 00:22:17,000 --> 00:22:18,800 Speaker 1: it's interesting too when you look at things are a 488 00:22:18,840 --> 00:22:22,040 Speaker 1: lot different than they were that long ago. Yes, yes 489 00:22:22,040 --> 00:22:24,600 Speaker 1: they are. Our monetary system in modern society look a 490 00:22:24,640 --> 00:22:26,600 Speaker 1: whole lot different than it did a hundred years ago. 491 00:22:26,880 --> 00:22:28,920 Speaker 1: But yeah, one of the things to note is that 492 00:22:29,000 --> 00:22:31,480 Speaker 1: when when you have a teen percent draw down after 493 00:22:31,600 --> 00:22:34,360 Speaker 1: the run up that we've seen too, it shouldn't shock 494 00:22:34,440 --> 00:22:38,000 Speaker 1: people as as we've had essentially thirteen years of an 495 00:22:38,040 --> 00:22:41,400 Speaker 1: unadulterated bowl run, which is another term I guess we 496 00:22:41,400 --> 00:22:43,920 Speaker 1: we could define where the market has just continued to 497 00:22:43,960 --> 00:22:46,919 Speaker 1: go up with with very few hiccups. And so it's like, 498 00:22:46,960 --> 00:22:50,119 Speaker 1: if your favorite baseball player hits four hundred for the 499 00:22:50,200 --> 00:22:52,560 Speaker 1: first two months of the season, the likelihood that they're 500 00:22:52,560 --> 00:22:55,280 Speaker 1: gonna continue to that. If if their final batting averages 501 00:22:55,320 --> 00:22:57,600 Speaker 1: three sixty, it's like they's not a great season. Right, 502 00:22:57,640 --> 00:23:02,080 Speaker 1: you shouldn't be bummed. That's still some good batting. Yes, 503 00:23:03,680 --> 00:23:06,400 Speaker 1: I don't watch much faceball. You don't have some good 504 00:23:06,440 --> 00:23:10,680 Speaker 1: slugging their slugger, I'll get talking to it. Three year old. 505 00:23:10,680 --> 00:23:12,600 Speaker 1: I think, well, like maybe two or three guys have 506 00:23:12,680 --> 00:23:14,480 Speaker 1: hit four hundred throughout a whole season, so it's like 507 00:23:14,800 --> 00:23:17,760 Speaker 1: almost non existent. But in those acts don't even count 508 00:23:17,760 --> 00:23:20,760 Speaker 1: because of the Royds, Right, But some of those guys 509 00:23:20,880 --> 00:23:24,280 Speaker 1: will actually will will hit four hundred for a month 510 00:23:24,359 --> 00:23:26,640 Speaker 1: or two and it definitely makes a lot of headlines, 511 00:23:27,000 --> 00:23:29,400 Speaker 1: but it's almost impossible for it to stay that way 512 00:23:29,440 --> 00:23:31,760 Speaker 1: for forever. And so yeah, let's talk about maybe the 513 00:23:31,800 --> 00:23:34,560 Speaker 1: present realities of the stock market and what's happening right now. 514 00:23:34,960 --> 00:23:37,560 Speaker 1: You're bound to hear at least someone say that it's 515 00:23:37,600 --> 00:23:40,439 Speaker 1: different this time when we're in a volatile stretch, and 516 00:23:40,480 --> 00:23:43,080 Speaker 1: some of those folks would encourage you to sell your stocks, 517 00:23:43,160 --> 00:23:45,240 Speaker 1: would encourage you to convert to cash because of the 518 00:23:45,280 --> 00:23:48,359 Speaker 1: coming apocalypse. We've talked about Robert Kyosaki. He is one 519 00:23:48,400 --> 00:23:50,640 Speaker 1: of those guys who he's written a best selling book 520 00:23:50,640 --> 00:23:52,720 Speaker 1: and he's given people a lot of good advice about 521 00:23:52,800 --> 00:23:54,919 Speaker 1: money over the years. But on Twitter, he seems to 522 00:23:54,920 --> 00:23:57,840 Speaker 1: always be predicting a market crash and he has basically 523 00:23:57,880 --> 00:23:59,959 Speaker 1: always been wrong. And so yeah, we would fund him 524 00:24:00,000 --> 00:24:02,320 Speaker 1: elite disagree with someone like him who is saying, like, 525 00:24:02,640 --> 00:24:05,600 Speaker 1: get out because the crash is coming this time. It's difference. 526 00:24:05,840 --> 00:24:09,560 Speaker 1: And yeah, his history doesn't necessarily repeat, but it does 527 00:24:09,760 --> 00:24:13,040 Speaker 1: rhyme as it said, And so we believe that nothing 528 00:24:13,200 --> 00:24:15,879 Speaker 1: is ever truly all that different. And that's the same 529 00:24:15,920 --> 00:24:18,720 Speaker 1: old story man, right, And we've gone through when you 530 00:24:18,720 --> 00:24:20,719 Speaker 1: look at the history of the United States and the 531 00:24:20,760 --> 00:24:23,680 Speaker 1: history of the stock market together, we've gone through world 532 00:24:23,720 --> 00:24:26,960 Speaker 1: wars and now pandemics, and we have gone through just 533 00:24:27,240 --> 00:24:31,680 Speaker 1: so many horrifying world stage events. And at the same time, 534 00:24:31,760 --> 00:24:35,639 Speaker 1: American capitalism continues to chug along. And so yeah, in 535 00:24:35,640 --> 00:24:37,760 Speaker 1: the moment, it can feel like everything's about to collapse, 536 00:24:38,000 --> 00:24:40,240 Speaker 1: but staying the course is the thing to do, of course. 537 00:24:40,480 --> 00:24:43,200 Speaker 1: And so yeah, one thing worth mentioning is that inflation 538 00:24:43,359 --> 00:24:45,840 Speaker 1: is one thing that we're battling right now. And some 539 00:24:45,880 --> 00:24:48,280 Speaker 1: people would point to that as a new phenomenon, but 540 00:24:48,720 --> 00:24:51,240 Speaker 1: we would say that's not the case either. It's not 541 00:24:51,320 --> 00:24:53,280 Speaker 1: that as new, it's just it is, you know that 542 00:24:53,400 --> 00:24:55,520 Speaker 1: all time highs, the highest has been over the past 543 00:24:55,560 --> 00:24:58,000 Speaker 1: forty years, probably the highest has been since any of 544 00:24:58,000 --> 00:25:00,560 Speaker 1: most of our listeners have been alive, right, Yeah, inflation 545 00:25:00,760 --> 00:25:03,280 Speaker 1: is at something like seven percent right now, where we've 546 00:25:03,280 --> 00:25:05,639 Speaker 1: been used to seeing it between one and two percent. 547 00:25:05,920 --> 00:25:08,600 Speaker 1: And although there are some people listening to this podcast 548 00:25:08,600 --> 00:25:11,280 Speaker 1: who have been alive long enough that they remember the 549 00:25:11,359 --> 00:25:15,160 Speaker 1: seventies and eighties where inflation was basically out of control, 550 00:25:15,440 --> 00:25:18,080 Speaker 1: ramping like the average was seven percent, like not just 551 00:25:18,320 --> 00:25:21,200 Speaker 1: you know, one one marker of year year over year 552 00:25:21,240 --> 00:25:22,840 Speaker 1: at seven percent where we hit it for the first time. 553 00:25:23,160 --> 00:25:24,720 Speaker 1: Literally it was like the average over like a couple 554 00:25:24,760 --> 00:25:28,000 Speaker 1: of decades. We're experiencing like a blip in inflation, especially 555 00:25:28,040 --> 00:25:30,439 Speaker 1: when you compared to that. But for us, for for 556 00:25:30,480 --> 00:25:32,280 Speaker 1: many of us, for many of our listeners, this feels 557 00:25:32,320 --> 00:25:35,160 Speaker 1: like something abnormal, something new, but it's important to remember 558 00:25:35,240 --> 00:25:37,239 Speaker 1: that it's not, and that this is something that we 559 00:25:37,320 --> 00:25:40,240 Speaker 1: as a society have experienced before. Yeah. And the other 560 00:25:40,240 --> 00:25:42,080 Speaker 1: thing too, is just because inflation is up, that doesn't 561 00:25:42,119 --> 00:25:44,840 Speaker 1: mean that we're not going to see good returns from 562 00:25:44,880 --> 00:25:47,400 Speaker 1: the market in the coming years. Right. So the friend 563 00:25:47,400 --> 00:25:50,639 Speaker 1: of the show, Ben Carlson, he loves his data, and 564 00:25:50,680 --> 00:25:53,879 Speaker 1: he actually crunched the numbers on inflation in relation to 565 00:25:53,960 --> 00:25:56,720 Speaker 1: market returns and there is no clear pattern. And so 566 00:25:56,760 --> 00:25:59,200 Speaker 1: the volatility that we're experiencing today in the market, it's 567 00:25:59,240 --> 00:26:01,960 Speaker 1: likely not being cause by inflation. You know the reason, 568 00:26:02,200 --> 00:26:04,359 Speaker 1: you know why this is happening. This, this volatility is 569 00:26:04,400 --> 00:26:07,520 Speaker 1: something that gets talked about ad nauseum. Everyone's got to 570 00:26:07,560 --> 00:26:09,840 Speaker 1: take you know, whether it's the Fed raising rates, like 571 00:26:09,920 --> 00:26:11,919 Speaker 1: that's why it is. Everybody wants to sound smart and 572 00:26:11,920 --> 00:26:15,160 Speaker 1: be like this is why stocks are suffering, or maybe 573 00:26:15,320 --> 00:26:17,000 Speaker 1: like some folks were like, oh, it's you a political right, 574 00:26:17,000 --> 00:26:19,840 Speaker 1: it's Russia, it's Ukraine. I mean maybe, like maybe that's 575 00:26:19,880 --> 00:26:23,080 Speaker 1: the case, but the stock market is incredibly complex and 576 00:26:23,080 --> 00:26:25,119 Speaker 1: it's really hard for us to point to a single 577 00:26:25,200 --> 00:26:27,560 Speaker 1: root cause for how it is that the market is 578 00:26:27,640 --> 00:26:30,560 Speaker 1: reacting on any given day of the week. So what 579 00:26:30,600 --> 00:26:32,560 Speaker 1: are we saying. We're I think we're basically telling you 580 00:26:32,640 --> 00:26:36,840 Speaker 1: not to worry about volatility or inflation from an investing standpoint, right, 581 00:26:36,960 --> 00:26:39,840 Speaker 1: And there might be some listeners who are thinking easy 582 00:26:39,880 --> 00:26:42,520 Speaker 1: for you to say, you've got years, even even decades 583 00:26:42,600 --> 00:26:45,480 Speaker 1: to go before you have to start selling investments, which 584 00:26:45,560 --> 00:26:47,439 Speaker 1: which is true, Matt, Like you and we are in 585 00:26:47,480 --> 00:26:50,840 Speaker 1: our late thirties and and hopefully we won't be tapping 586 00:26:51,119 --> 00:26:54,360 Speaker 1: those uh four o one case for decades to come. 587 00:26:54,840 --> 00:26:58,240 Speaker 1: But yeah, your timeline is an important thing, an important 588 00:26:58,240 --> 00:27:00,680 Speaker 1: part of this conversation, and when you need to draw 589 00:27:00,680 --> 00:27:04,320 Speaker 1: on funds absolutely has an impact on your approach to 590 00:27:04,680 --> 00:27:07,360 Speaker 1: a market town turn. And so when you're younger, as 591 00:27:07,400 --> 00:27:09,719 Speaker 1: most of our listeners are, they are in their twenties 592 00:27:09,720 --> 00:27:12,919 Speaker 1: and thirties, you should see the market plunging and immediately 593 00:27:13,080 --> 00:27:15,920 Speaker 1: equate that too. When your favorite store is having its 594 00:27:16,119 --> 00:27:18,440 Speaker 1: annual sale, like if you're in your twenties and thirties, 595 00:27:18,440 --> 00:27:22,480 Speaker 1: you should be buying more, loading up on those off 596 00:27:22,600 --> 00:27:25,080 Speaker 1: sneakers or sweaters or whatever it is. And so basically, yeah, 597 00:27:25,080 --> 00:27:26,800 Speaker 1: you knew you were going to get some new sneakers 598 00:27:27,320 --> 00:27:29,679 Speaker 1: at some point this year, and if you hadn't already 599 00:27:29,680 --> 00:27:32,000 Speaker 1: purchased them, it's like, all, right, now is the time? 600 00:27:32,080 --> 00:27:34,040 Speaker 1: Why not? Yeah, you get when the getting is good, 601 00:27:34,960 --> 00:27:39,000 Speaker 1: sunshines exactly all those phrases, and so, of course it's 602 00:27:39,000 --> 00:27:41,200 Speaker 1: a it's a tougher pill to swallow if you're no 603 00:27:41,240 --> 00:27:43,520 Speaker 1: longer in the wealth building phase of your life. But 604 00:27:43,560 --> 00:27:45,359 Speaker 1: we would say that's why the portfolio that you have 605 00:27:45,440 --> 00:27:47,240 Speaker 1: you need to be able to stomach these downturns, and 606 00:27:47,359 --> 00:27:50,119 Speaker 1: especially if you are in your fifties and sixties, if 607 00:27:50,119 --> 00:27:52,000 Speaker 1: you're getting closer to that age where you're gonna start 608 00:27:52,040 --> 00:27:55,960 Speaker 1: drawing on those retirement funds, your portfolio can and should 609 00:27:56,040 --> 00:27:59,040 Speaker 1: reflect a real risk tolerance that you have. Most folks 610 00:27:59,040 --> 00:28:02,480 Speaker 1: in the wealth preserve a stage should not have exposure 611 00:28:02,480 --> 00:28:04,399 Speaker 1: to stocks because it puts them at too much, too 612 00:28:04,480 --> 00:28:07,000 Speaker 1: much risk to their actual money, but also the emotional 613 00:28:07,080 --> 00:28:09,400 Speaker 1: risk that comes alongside of that. When you can see 614 00:28:09,440 --> 00:28:13,439 Speaker 1: your portfolio in like literally one month dropped by six digits, 615 00:28:13,480 --> 00:28:16,359 Speaker 1: like that's a scary scenario when you're getting closer to 616 00:28:16,400 --> 00:28:18,199 Speaker 1: the point where you're gonna need that money, so you 617 00:28:18,240 --> 00:28:20,440 Speaker 1: have to be careful and make sure that how you're 618 00:28:20,480 --> 00:28:24,200 Speaker 1: invested reflects your specific situation. Although you could easily argue 619 00:28:24,400 --> 00:28:26,520 Speaker 1: that the best way to preserve your money is by 620 00:28:26,560 --> 00:28:29,119 Speaker 1: growing it, right, Like the best defense is a is 621 00:28:29,119 --> 00:28:32,520 Speaker 1: a good offense. That's another sports reference, is that baseball 622 00:28:32,560 --> 00:28:34,040 Speaker 1: as well? Well? I think that's true. But like, let's 623 00:28:34,080 --> 00:28:37,000 Speaker 1: say you're you're retiring next month and you're you know, 624 00:28:37,080 --> 00:28:39,440 Speaker 1: you need to make sure that your portfolio could withstand 625 00:28:39,480 --> 00:28:41,280 Speaker 1: what we just called a bear market, right that if 626 00:28:41,400 --> 00:28:44,160 Speaker 1: if the stocks went down, you probably don't want your 627 00:28:44,160 --> 00:28:47,080 Speaker 1: portfolio going down, and so you need to be more 628 00:28:47,120 --> 00:28:50,440 Speaker 1: conservatively invested to make sure that you can handle just 629 00:28:50,480 --> 00:28:52,560 Speaker 1: an eight percent correction or something like that instead of 630 00:28:52,760 --> 00:28:55,080 Speaker 1: that full on twenty percent correction that folks like you 631 00:28:55,120 --> 00:28:57,160 Speaker 1: and I are willing to experience. Exactly, And this is 632 00:28:57,200 --> 00:28:59,880 Speaker 1: where psychology in our behavior is so much more important 633 00:28:59,880 --> 00:29:03,400 Speaker 1: than understanding the fundamentals of how to invest. And so 634 00:29:03,560 --> 00:29:05,680 Speaker 1: let's let's talk about why we should be optimistic about 635 00:29:05,720 --> 00:29:08,480 Speaker 1: the stock market. Uh. Tyler Cowen, he had a great 636 00:29:08,560 --> 00:29:12,320 Speaker 1: article about why American pessimism how you know why it 637 00:29:12,360 --> 00:29:15,120 Speaker 1: doesn't extend to short selling the market? Uh? And basically 638 00:29:15,120 --> 00:29:18,600 Speaker 1: he argued that if you know you've got a pessimistic viewpoint, 639 00:29:18,880 --> 00:29:20,640 Speaker 1: if that was your actual long term point of view, 640 00:29:20,960 --> 00:29:23,880 Speaker 1: you would likely be making some drastic moves right now, 641 00:29:24,320 --> 00:29:27,320 Speaker 1: like selling off most or all of your stock portfolio, 642 00:29:27,440 --> 00:29:29,640 Speaker 1: or maybe just like holding short positions in the market 643 00:29:29,920 --> 00:29:33,080 Speaker 1: in order to make money since decline is inevitable in 644 00:29:33,120 --> 00:29:35,840 Speaker 1: those pessimists opinion. Right. But the thing is is that 645 00:29:35,880 --> 00:29:39,200 Speaker 1: those pessimists, they rarely go to that extreme. The best 646 00:29:39,200 --> 00:29:42,800 Speaker 1: line from that article was that apparently selling previously acquired 647 00:29:42,840 --> 00:29:46,160 Speaker 1: assets and lost too much work even with a pending apocalypse, 648 00:29:46,640 --> 00:29:49,080 Speaker 1: which isn't I mean, it is so true because if 649 00:29:49,080 --> 00:29:52,360 Speaker 1: there truly is opending apocalypse, you do the work, You 650 00:29:52,360 --> 00:29:55,160 Speaker 1: take the steps necessary to basically reinforce what it is 651 00:29:55,200 --> 00:29:57,560 Speaker 1: that you are saying. But the fact is there's a 652 00:29:57,600 --> 00:29:59,600 Speaker 1: lot of people saying that, but they don't truly believe it. 653 00:29:59,640 --> 00:30:01,200 Speaker 1: I try, you sell out of stocks and then you 654 00:30:01,240 --> 00:30:03,160 Speaker 1: go to Costco and you buy one of those like 655 00:30:03,320 --> 00:30:07,480 Speaker 1: you buy a prefab bunker food supplies, you know, like 656 00:30:07,720 --> 00:30:10,520 Speaker 1: hunker down exactly if you really believe that. Yeah, And 657 00:30:10,560 --> 00:30:13,600 Speaker 1: there's a lot of people who will tweet pessimistic thoughts, 658 00:30:13,600 --> 00:30:15,880 Speaker 1: that will write pessimistic headlines, but it comes to how 659 00:30:15,920 --> 00:30:20,000 Speaker 1: they handle their money. They're not changing very they're still investing. Yeah, yeah, exactly. 660 00:30:20,080 --> 00:30:23,880 Speaker 1: So it's not that pessimism is never warranted, but they 661 00:30:23,920 --> 00:30:25,400 Speaker 1: just won't take you that far when it comes to 662 00:30:25,440 --> 00:30:27,680 Speaker 1: your investing journey. You need to stay in the market. 663 00:30:27,960 --> 00:30:29,840 Speaker 1: Makes me think of literally one of maybe my all 664 00:30:29,880 --> 00:30:32,960 Speaker 1: time favorite money quote from Morgan Household. He said, save 665 00:30:33,040 --> 00:30:35,400 Speaker 1: like a pessimist, invest like an optimist, And I think 666 00:30:35,440 --> 00:30:38,400 Speaker 1: that is always true because you should have cash on hand, right, 667 00:30:38,400 --> 00:30:40,400 Speaker 1: that's what your emergency fund. And then on top of that, 668 00:30:40,680 --> 00:30:42,920 Speaker 1: you're the money that's in your savings account is supposed 669 00:30:42,960 --> 00:30:45,200 Speaker 1: to do, supposed to help you get through those times 670 00:30:45,440 --> 00:30:48,280 Speaker 1: that you couldn't have planned, times where you do lose 671 00:30:48,280 --> 00:30:51,840 Speaker 1: a job or a transmission goes out on your car. Investing, though, like, 672 00:30:52,520 --> 00:30:54,360 Speaker 1: you should pay less attention to the headlines. You should 673 00:30:54,400 --> 00:30:56,920 Speaker 1: invest like an optimist, and you should continue doing so 674 00:30:57,120 --> 00:30:59,800 Speaker 1: because ultimately that is what's going to make you wealthy's 675 00:31:00,120 --> 00:31:02,360 Speaker 1: And so yeah, there's this Jack Bobble quote math that's 676 00:31:02,360 --> 00:31:04,080 Speaker 1: worth sharing here too. And we got a lot of 677 00:31:04,160 --> 00:31:07,320 Speaker 1: quotes this for this episode, as we do. And he said, 678 00:31:07,720 --> 00:31:10,880 Speaker 1: Jack Bobble. Obviously, he's the founder of Vanguard, which is 679 00:31:10,920 --> 00:31:14,520 Speaker 1: a low cost brokerage firm who we think are are 680 00:31:14,520 --> 00:31:17,600 Speaker 1: wonderful and we encourage people to look to Vanguard as 681 00:31:17,640 --> 00:31:19,520 Speaker 1: one of the places where they might invest their money. 682 00:31:19,720 --> 00:31:22,480 Speaker 1: He said the stock market is a giant distraction to 683 00:31:22,520 --> 00:31:27,080 Speaker 1: the business of investing, and which sounds like a paradox, right, 684 00:31:27,120 --> 00:31:30,320 Speaker 1: because obviously the market is incredibly necessary in order to invest. 685 00:31:30,360 --> 00:31:32,760 Speaker 1: Like it literally, it's called a stock market. It's it's 686 00:31:32,760 --> 00:31:34,880 Speaker 1: a market that you go to where you invest in stocks. 687 00:31:34,920 --> 00:31:36,280 Speaker 1: It's like going to a meat market. You want to 688 00:31:36,280 --> 00:31:38,640 Speaker 1: buy meat, you go to the market. You want to 689 00:31:38,640 --> 00:31:40,840 Speaker 1: buy stocks and invest, you go to the stock market. 690 00:31:41,080 --> 00:31:43,719 Speaker 1: But yeah, obviously he's talking about the volatility that can 691 00:31:43,760 --> 00:31:47,320 Speaker 1: so often distract us from our ultimate goals. Yeah, exactly, 692 00:31:47,520 --> 00:31:50,040 Speaker 1: exactly where where we just get to beholden to what 693 00:31:50,120 --> 00:31:52,720 Speaker 1: the prices on a given day or the percentage draw 694 00:31:52,800 --> 00:31:55,400 Speaker 1: down in a specific week. And he's saying that like 695 00:31:55,680 --> 00:31:58,160 Speaker 1: that is the stuff that is going to prevent you 696 00:31:58,400 --> 00:32:00,880 Speaker 1: from being able to actually take it vantage of the 697 00:32:00,920 --> 00:32:03,760 Speaker 1: wealth building mechanism that is the stock market. It's just 698 00:32:03,880 --> 00:32:06,240 Speaker 1: it's just too easy to get pessimistic when stocks are 699 00:32:06,440 --> 00:32:10,200 Speaker 1: falling to see all the negative potential that the upcoming 700 00:32:10,200 --> 00:32:13,000 Speaker 1: weeks and months could hold, that a war between Russia 701 00:32:13,000 --> 00:32:15,920 Speaker 1: and Ukraine and then the US getting involved could potentially present. 702 00:32:16,240 --> 00:32:19,320 Speaker 1: But we have experienced worse in you know, in our 703 00:32:19,360 --> 00:32:20,840 Speaker 1: in our history, in the history of the world, and 704 00:32:20,880 --> 00:32:24,000 Speaker 1: in the history of our country. And so yeah, let's 705 00:32:24,080 --> 00:32:27,560 Speaker 1: let's take that pessimism with a grain of salts um. 706 00:32:27,600 --> 00:32:29,880 Speaker 1: And so yeah, really you should be looking more towards 707 00:32:30,120 --> 00:32:32,840 Speaker 1: future potential for those dollars to grow, not kind of 708 00:32:32,920 --> 00:32:35,680 Speaker 1: what's been happening in the past month or even the 709 00:32:35,720 --> 00:32:38,120 Speaker 1: past year or two. And so yeah, if you're casting 710 00:32:38,200 --> 00:32:41,000 Speaker 1: your gaye decades down the road, it's gonna help you 711 00:32:41,040 --> 00:32:44,480 Speaker 1: develop real optimism in the present as opposed to taking 712 00:32:44,480 --> 00:32:47,040 Speaker 1: on the identity of all the pessimistic voices that are 713 00:32:47,080 --> 00:32:50,040 Speaker 1: kind of predominant these days. All Right, So we've covered 714 00:32:50,080 --> 00:32:52,680 Speaker 1: a lot when it comes to like definitions, when it 715 00:32:52,680 --> 00:32:54,680 Speaker 1: comes to kind of how you should think about staying 716 00:32:54,680 --> 00:32:57,360 Speaker 1: the course the mindset. Yeah, but but there's there's more 717 00:32:57,360 --> 00:32:58,800 Speaker 1: we have to get to you mat so that how 718 00:32:58,760 --> 00:33:02,360 Speaker 1: the money listeners can be successful investors, not just now 719 00:33:02,520 --> 00:33:05,160 Speaker 1: but well into the future. Some guidelines some pieces of 720 00:33:05,200 --> 00:33:08,280 Speaker 1: advice that they should cling to, uh, in order to 721 00:33:08,280 --> 00:33:10,560 Speaker 1: continue building wealth. And we'll get to our thoughts on 722 00:33:10,600 --> 00:33:21,720 Speaker 1: that right after this break. All right, we are back 723 00:33:21,760 --> 00:33:23,640 Speaker 1: from the break, and you know, we kind of broke 724 00:33:23,680 --> 00:33:25,600 Speaker 1: this up into what's happened in the past, what we're 725 00:33:25,600 --> 00:33:28,360 Speaker 1: experiencing right now. It is now time to talk about 726 00:33:28,400 --> 00:33:32,120 Speaker 1: the future in the year. It makes me think about 727 00:33:32,120 --> 00:33:35,120 Speaker 1: that old Conan O'Brien's kit and now it's two where 728 00:33:35,160 --> 00:33:38,000 Speaker 1: the flying cars man? Right? Uh? So, yeah, that's that's 729 00:33:38,040 --> 00:33:39,760 Speaker 1: what we're talking about now. Like what do you do now? 730 00:33:39,880 --> 00:33:42,200 Speaker 1: Like where do we go from here? Staying the course 731 00:33:42,560 --> 00:33:44,800 Speaker 1: We believe that that is the best option, and it's 732 00:33:44,840 --> 00:33:47,360 Speaker 1: not even close. There are, of course going to be 733 00:33:47,400 --> 00:33:50,440 Speaker 1: some folks who are nearing retirement, like we said earlier, 734 00:33:50,560 --> 00:33:53,240 Speaker 1: who would benefit from taking some money out of stocks 735 00:33:53,560 --> 00:33:56,680 Speaker 1: and having a less risky portfolio overall. But that shouldn't 736 00:33:56,720 --> 00:33:59,120 Speaker 1: be in reaction to what the market is currently doing. 737 00:33:59,120 --> 00:34:01,720 Speaker 1: It should be in reaction into the reality that you're 738 00:34:01,760 --> 00:34:04,640 Speaker 1: just getting older. Right, is this innevitable process that we 739 00:34:04,640 --> 00:34:07,960 Speaker 1: all go through? Uh? And you are drawing closer to retirement, uh, 740 00:34:08,000 --> 00:34:10,920 Speaker 1: and so for you than maybe rebalancing and coming up 741 00:34:10,920 --> 00:34:12,360 Speaker 1: with a different plan is what you need to do. 742 00:34:12,400 --> 00:34:15,080 Speaker 1: But it's not because of what you are currently experiencing 743 00:34:15,080 --> 00:34:17,640 Speaker 1: with the market. And so for virtually everyone else, sticking 744 00:34:17,640 --> 00:34:21,719 Speaker 1: to your current strategy, even in the midst of market corrections, uh, 745 00:34:21,960 --> 00:34:24,279 Speaker 1: bear markets, or even crashes, that is the right path 746 00:34:24,360 --> 00:34:26,359 Speaker 1: to take from here, that's right, Matt. Yeah, one one 747 00:34:26,360 --> 00:34:29,160 Speaker 1: helpful article from seeing in Business. I really appreciated the 748 00:34:29,239 --> 00:34:32,640 Speaker 1: headline this past week. They literally encourage folks to forget 749 00:34:32,680 --> 00:34:35,440 Speaker 1: their four own K password, and I was like, that's 750 00:34:35,640 --> 00:34:37,680 Speaker 1: really good advice because there's probably a lot of people 751 00:34:37,760 --> 00:34:40,319 Speaker 1: logging in there right now. They see a bunch of 752 00:34:40,320 --> 00:34:42,960 Speaker 1: red on the screen, how much money they are down 753 00:34:43,120 --> 00:34:46,160 Speaker 1: in the past, in the past weeks or month, and 754 00:34:46,640 --> 00:34:49,840 Speaker 1: they're wanted to do something, and so maybe not logging 755 00:34:49,840 --> 00:34:52,560 Speaker 1: in is actually the best thing for you your psyche, 756 00:34:52,719 --> 00:34:54,960 Speaker 1: but then also the best thing for your investments. And 757 00:34:55,000 --> 00:34:57,520 Speaker 1: so yeah, we would suggest that that's accurate. Uh, don't 758 00:34:57,640 --> 00:35:00,080 Speaker 1: log in and look at the numbers and um at. 759 00:35:00,160 --> 00:35:03,200 Speaker 1: It kind of reminded me of this fabled Fidelity study 760 00:35:03,320 --> 00:35:06,560 Speaker 1: that didn't actually happen, which supposedly found the people who 761 00:35:06,560 --> 00:35:10,040 Speaker 1: had the best investment performance were dead. Do you ever 762 00:35:10,160 --> 00:35:12,840 Speaker 1: hear about that? Yeah? Okay, but apparently it's not Actually 763 00:35:13,320 --> 00:35:15,440 Speaker 1: it was not a real study. Yeah, even if you 764 00:35:15,480 --> 00:35:17,920 Speaker 1: could run a study like that, which I mean, how 765 00:35:17,920 --> 00:35:19,759 Speaker 1: many dead people are there, whether their accounts are still 766 00:35:19,800 --> 00:35:23,480 Speaker 1: growing where probate hasn't kicked in and right and government 767 00:35:23,480 --> 00:35:25,560 Speaker 1: hasn't swooped in or whatever. But like, even though it's 768 00:35:25,560 --> 00:35:28,840 Speaker 1: a fictitious study, like if you take the facts and 769 00:35:28,960 --> 00:35:31,359 Speaker 1: run a study like that like a hypothetical, it's still 770 00:35:31,360 --> 00:35:34,759 Speaker 1: true exactly, which is just kind of fascinating to see that. 771 00:35:35,200 --> 00:35:38,600 Speaker 1: You know, not making changes in times of turmoil is 772 00:35:38,640 --> 00:35:40,839 Speaker 1: of course easier if you don't have a pulse, right 773 00:35:40,840 --> 00:35:44,440 Speaker 1: if you're dead, because you're not susceptible to the whims 774 00:35:44,520 --> 00:35:47,319 Speaker 1: of the market or the headline writers. But I think 775 00:35:47,320 --> 00:35:48,840 Speaker 1: it's you know, a good thing for us to remember 776 00:35:48,840 --> 00:35:51,799 Speaker 1: that when we are experiencing abouts of volatility, it's best 777 00:35:51,840 --> 00:35:54,439 Speaker 1: to kind of think like a dead person. Really, maybe 778 00:35:54,440 --> 00:35:56,399 Speaker 1: that should be our new slogan. Invest like you're dead. 779 00:35:57,280 --> 00:36:00,239 Speaker 1: It's like we can we get a burden's right, prop 780 00:36:00,320 --> 00:36:03,360 Speaker 1: yourself up, party like you're dead. One other thing to 781 00:36:03,400 --> 00:36:05,719 Speaker 1: mention here, too, is the great thing is that most 782 00:36:05,719 --> 00:36:07,960 Speaker 1: how the money listeners are probably going with the dollar 783 00:36:08,040 --> 00:36:11,399 Speaker 1: cost averaging approach to investing, and that's when you're putting 784 00:36:11,440 --> 00:36:14,160 Speaker 1: money in regularly, you know, often like every two weeks, 785 00:36:14,160 --> 00:36:17,560 Speaker 1: whenever you get paid. The excellent thing about this is 786 00:36:17,680 --> 00:36:20,200 Speaker 1: when these dips do happen, you are buying stocks at 787 00:36:20,200 --> 00:36:22,399 Speaker 1: a discount without even having to think about it. Right, 788 00:36:22,400 --> 00:36:25,480 Speaker 1: it's automatic ensure. Right, your portfolio has taken a bit 789 00:36:25,520 --> 00:36:27,959 Speaker 1: of a hit. But since you're buying more stocks while 790 00:36:28,160 --> 00:36:31,120 Speaker 1: prices are depressed, it creates more of a benefit for 791 00:36:31,160 --> 00:36:34,600 Speaker 1: you over the long run. That's dollar cost averaging. However, 792 00:36:34,640 --> 00:36:36,600 Speaker 1: if you find yourself in a situation where you have 793 00:36:36,680 --> 00:36:39,360 Speaker 1: a lump sum to invest, we wanted to mention that 794 00:36:39,440 --> 00:36:42,000 Speaker 1: the data shows that it makes most sense to invest 795 00:36:42,080 --> 00:36:44,160 Speaker 1: that money as soon as possible because on average, the 796 00:36:44,239 --> 00:36:47,480 Speaker 1: market grows more often than a shrinks. And so just 797 00:36:47,560 --> 00:36:49,600 Speaker 1: keep that in mind. If you are dollar cost averaging, 798 00:36:49,640 --> 00:36:52,040 Speaker 1: as the market tanks, you're getting a deal. But if 799 00:36:52,040 --> 00:36:53,640 Speaker 1: that's not you, if you do happen to have a 800 00:36:53,719 --> 00:36:56,360 Speaker 1: chunk of cash sitting around, don't overthink it. Invest that 801 00:36:56,360 --> 00:36:59,280 Speaker 1: money as soon as possible. Uh, time in the market 802 00:36:59,400 --> 00:37:02,799 Speaker 1: always is gonna beat timing the market. Yes, yes, it will. 803 00:37:03,000 --> 00:37:05,040 Speaker 1: It's a classic old phrase. I don't know who said it, 804 00:37:05,080 --> 00:37:07,120 Speaker 1: but I don't know. Pretty true, I like it. Yeah, 805 00:37:07,239 --> 00:37:10,720 Speaker 1: And uh, the weird thing, Matt, is that, for some reason, 806 00:37:10,960 --> 00:37:13,560 Speaker 1: when the stock market seems to be the only place 807 00:37:14,080 --> 00:37:16,280 Speaker 1: where people run for the exit when the sales starts, 808 00:37:16,640 --> 00:37:19,320 Speaker 1: when Amazon Prime Day comes along, everybody should be shopping 809 00:37:19,360 --> 00:37:22,040 Speaker 1: on Amazon. Nobody's freaking out. No, everybody's loving it. And 810 00:37:22,080 --> 00:37:23,759 Speaker 1: let's say you're saying, oh, the value of my air 811 00:37:23,880 --> 00:37:27,279 Speaker 1: air fryer just went down in value. Thinking about it 812 00:37:27,280 --> 00:37:29,040 Speaker 1: from this day point, you know, they're like, yeah, I'm 813 00:37:29,040 --> 00:37:31,400 Speaker 1: gonna get three air fryers because they're cheaper than they 814 00:37:31,440 --> 00:37:33,280 Speaker 1: ever were, and I'm gonna start stocking up for Christmas 815 00:37:33,320 --> 00:37:37,560 Speaker 1: gifts air friers for everyone. And but it's interesting how 816 00:37:37,600 --> 00:37:41,200 Speaker 1: the exact opposite thing happens in the stock market. And 817 00:37:41,200 --> 00:37:44,040 Speaker 1: and so, yeah, the crucial thing to remember is that 818 00:37:44,440 --> 00:37:48,000 Speaker 1: you don't actually lose money unless you sell. It's just 819 00:37:48,080 --> 00:37:50,839 Speaker 1: numbers going down on a screen until you turn the 820 00:37:50,880 --> 00:37:54,080 Speaker 1: abstract into reality. So when you're faced with the correction 821 00:37:54,239 --> 00:37:56,880 Speaker 1: or a crash, don't lock in those losses by selling it. 822 00:37:56,960 --> 00:37:59,520 Speaker 1: The exact wrong time to sell. At the same time, 823 00:37:59,719 --> 00:38:01,520 Speaker 1: don't assume that it's a bad time to buy as 824 00:38:01,560 --> 00:38:03,520 Speaker 1: things are going down. But think of it just like 825 00:38:03,600 --> 00:38:07,000 Speaker 1: Amazon Prime Day. But for your investing future, for the 826 00:38:07,040 --> 00:38:10,040 Speaker 1: future of your stockholdings, of of your ultimate wealth building 827 00:38:10,080 --> 00:38:12,840 Speaker 1: goals future, you is who you want to keep in 828 00:38:12,880 --> 00:38:15,319 Speaker 1: mind when it comes when the markets taking buy those 829 00:38:15,320 --> 00:38:17,239 Speaker 1: stocks on sale for Yeah, and the thing is, you 830 00:38:17,280 --> 00:38:20,400 Speaker 1: don't get big gains without volatility, right Like, if you 831 00:38:20,480 --> 00:38:22,759 Speaker 1: like certain do you just stick his savings accounts c 832 00:38:22,960 --> 00:38:25,239 Speaker 1: d s. Those have obviously not been kind to your 833 00:38:25,280 --> 00:38:28,760 Speaker 1: dollars recently, but there's a real purpose behind having savings 834 00:38:28,760 --> 00:38:31,839 Speaker 1: on hand. But you've ultimately got to take risks if 835 00:38:31,840 --> 00:38:34,480 Speaker 1: you want to earn returns on your money. And I 836 00:38:34,520 --> 00:38:37,560 Speaker 1: think one more important thing really worth mentioning is some 837 00:38:37,600 --> 00:38:39,680 Speaker 1: people might need help. Some people might feel like they 838 00:38:39,680 --> 00:38:43,479 Speaker 1: can't go it alone or might feel to disheartened by 839 00:38:44,040 --> 00:38:46,480 Speaker 1: stock market corrections where they feel like they have to 840 00:38:46,520 --> 00:38:49,640 Speaker 1: take a move because it's a frightening scenario. And yeah, 841 00:38:49,680 --> 00:38:51,560 Speaker 1: if you're final full, you don't feel that way. Because 842 00:38:51,560 --> 00:38:54,040 Speaker 1: you're listening to this episode right now exactly. We're kind 843 00:38:54,080 --> 00:38:57,480 Speaker 1: of trying to be your coaches like podcast, but if 844 00:38:57,520 --> 00:38:59,839 Speaker 1: you feel like you need an actual human being can 845 00:39:00,239 --> 00:39:02,359 Speaker 1: personal trader, yeah, where they can actually like look at 846 00:39:02,360 --> 00:39:04,640 Speaker 1: you in the eye and talk to you about how 847 00:39:04,680 --> 00:39:08,200 Speaker 1: you're feeling. Well, that that person would be a financial advisor, 848 00:39:08,200 --> 00:39:10,480 Speaker 1: and that can make sense for some people, Matt who 849 00:39:10,800 --> 00:39:14,400 Speaker 1: you know, financial advisors aren't cheap, but they're definitely cheaper 850 00:39:14,440 --> 00:39:17,319 Speaker 1: than selling at the wrong time, right and so uh, 851 00:39:17,719 --> 00:39:19,840 Speaker 1: if you know yourself and you've toyed with the idea 852 00:39:19,840 --> 00:39:22,799 Speaker 1: of selling, let's say in the midst of recent volatility, 853 00:39:23,000 --> 00:39:25,719 Speaker 1: hiring someone who can help you develop and stick to 854 00:39:25,719 --> 00:39:28,600 Speaker 1: a plan can be well worth the cost. X Y 855 00:39:28,640 --> 00:39:31,160 Speaker 1: Planning Network is one of our favorite places for folks 856 00:39:31,160 --> 00:39:33,440 Speaker 1: to start if they feel like they absolutely need an 857 00:39:33,440 --> 00:39:35,760 Speaker 1: advisor on their side and they can't go it alone. 858 00:39:36,200 --> 00:39:38,520 Speaker 1: We think you can invest without the help of someone 859 00:39:38,560 --> 00:39:40,759 Speaker 1: else in order to build wealth for your future. But 860 00:39:40,880 --> 00:39:43,080 Speaker 1: if you are getting nervous and you don't think you 861 00:39:43,120 --> 00:39:44,960 Speaker 1: can well, then that might be the time where you 862 00:39:45,000 --> 00:39:47,520 Speaker 1: need to hire someone who can come alongside you and 863 00:39:47,560 --> 00:39:50,000 Speaker 1: help ensure that you stay the course. And that person 864 00:39:50,200 --> 00:39:52,920 Speaker 1: is in all likelihood going to be a financial planner 865 00:39:53,080 --> 00:39:56,480 Speaker 1: or even somebody like an accredited financial coach. That's right. 866 00:39:56,520 --> 00:39:58,640 Speaker 1: You might know yourself really well and know that someone 867 00:39:58,719 --> 00:40:01,879 Speaker 1: like that guiding you you through some turbulent times would 868 00:40:01,920 --> 00:40:04,560 Speaker 1: be completely worth it. It's like a higher NASA. You 869 00:40:04,600 --> 00:40:06,719 Speaker 1: might not need one, you might be able to get 870 00:40:06,760 --> 00:40:09,120 Speaker 1: there on your own, but you might also find that 871 00:40:09,200 --> 00:40:11,400 Speaker 1: you in particular, that's something you need. Yeah. Plus it 872 00:40:11,400 --> 00:40:13,759 Speaker 1: probably doesn't hurt you know it stice having some company 873 00:40:14,400 --> 00:40:17,719 Speaker 1: on the road on the path up Mount Everest. But 874 00:40:17,800 --> 00:40:19,399 Speaker 1: you know, I mean at the end of the day, 875 00:40:19,520 --> 00:40:22,279 Speaker 1: like discipline, the ability to endure a risk, these are 876 00:40:22,320 --> 00:40:24,960 Speaker 1: the things that you'll need to develop as an investor 877 00:40:25,480 --> 00:40:28,040 Speaker 1: because the stock market it doesn't always go up. It's 878 00:40:28,080 --> 00:40:31,279 Speaker 1: not just a high yield savings account that pays, you know, 879 00:40:31,360 --> 00:40:33,439 Speaker 1: like a hundred times more than what your bank is paying. 880 00:40:33,480 --> 00:40:35,479 Speaker 1: That's what people started to feel like though the last 881 00:40:35,480 --> 00:40:37,880 Speaker 1: like ten twelve years. Yeah, and it's understandable too because 882 00:40:38,040 --> 00:40:40,640 Speaker 1: like a lot of young professionals who started investing in 883 00:40:40,680 --> 00:40:43,359 Speaker 1: twenty ten or later, Uh, they've only for the most 884 00:40:43,360 --> 00:40:46,160 Speaker 1: part seeing the market just on the rise. But it 885 00:40:46,239 --> 00:40:49,000 Speaker 1: is important to know that corrections occur regularly. Aside from 886 00:40:49,040 --> 00:40:51,600 Speaker 1: you know, the novel global pandemic that we experienced back 887 00:40:51,600 --> 00:40:56,040 Speaker 1: in that took the markets down. But bear markets, even crashes, 888 00:40:56,120 --> 00:40:58,400 Speaker 1: they're going to pop up every now and then. But 889 00:40:58,600 --> 00:41:00,600 Speaker 1: if you know your risk tolerance, if you know your timeline, 890 00:41:00,840 --> 00:41:03,640 Speaker 1: you don't have to spend much time or energy thinking 891 00:41:03,640 --> 00:41:06,280 Speaker 1: about it. Yeah, again, going back to corrections, bear markets, 892 00:41:06,280 --> 00:41:09,719 Speaker 1: they're gonna happen regularly. They're gonna happen enough to where 893 00:41:09,800 --> 00:41:15,719 Speaker 1: you shouldn't freak out when percent of the time so happen. 894 00:41:15,800 --> 00:41:18,600 Speaker 1: If you know that those things are headed our way, 895 00:41:18,960 --> 00:41:21,279 Speaker 1: um and that they're inevitable, I think it's gonna help 896 00:41:21,360 --> 00:41:24,400 Speaker 1: bolster you to continue to make the right decisions even 897 00:41:24,440 --> 00:41:27,080 Speaker 1: when tough times go along. And the cool thing is 898 00:41:27,320 --> 00:41:29,960 Speaker 1: when those tough times come along, you're able to continue 899 00:41:30,000 --> 00:41:33,800 Speaker 1: buying more and in fact enhancing your ability to grow 900 00:41:33,960 --> 00:41:37,160 Speaker 1: your wealth for your future. So that's actually the best 901 00:41:37,160 --> 00:41:39,480 Speaker 1: way I think to think about these these corrections is 902 00:41:39,520 --> 00:41:43,000 Speaker 1: to steal your resolve and then also continue doing what 903 00:41:43,040 --> 00:41:45,759 Speaker 1: you were doing, continue buying more, but because it's only 904 00:41:45,760 --> 00:41:47,880 Speaker 1: going to put you in a better financial position in 905 00:41:47,920 --> 00:41:50,160 Speaker 1: the future. All Right, Matt, let's love it. Let's get 906 00:41:50,160 --> 00:41:52,040 Speaker 1: back to the beer that we had for this episode, 907 00:41:52,040 --> 00:41:54,960 Speaker 1: which is also love. Yeah, this one's really love investing 908 00:41:55,000 --> 00:41:57,239 Speaker 1: and I love the What is this called doing good? 909 00:41:57,320 --> 00:41:59,439 Speaker 1: A force for good? A force for good? Yeah, which 910 00:41:59,480 --> 00:42:01,600 Speaker 1: is a great name for a beer. And this one 911 00:42:01,680 --> 00:42:04,640 Speaker 1: came from two breweries that you and I really like, 912 00:42:04,920 --> 00:42:09,000 Speaker 1: Creature Comforts and Sierra Nevada. This was an Imperial Brown Ale. 913 00:42:09,080 --> 00:42:10,719 Speaker 1: What were your What were your thoughts on this one? Well, 914 00:42:10,719 --> 00:42:12,799 Speaker 1: I will tell you, but first I wanted to mention. So, yeah, 915 00:42:12,880 --> 00:42:15,359 Speaker 1: this is a collaboration. Uh. And it's called a force 916 00:42:15,400 --> 00:42:18,520 Speaker 1: for Good because one of the profits from this beer 917 00:42:18,880 --> 00:42:22,359 Speaker 1: go towards charities there in Athens, Georgia, And so it's 918 00:42:22,360 --> 00:42:25,160 Speaker 1: always nice to come across the beer that also has 919 00:42:25,160 --> 00:42:27,480 Speaker 1: a good mission. But yeah, so this is a rum 920 00:42:27,520 --> 00:42:31,520 Speaker 1: barrel aged beer with am Burana would, which I believe 921 00:42:31,560 --> 00:42:34,880 Speaker 1: I remember reading was a Brazilian would. Uh. It's first 922 00:42:34,920 --> 00:42:39,400 Speaker 1: aged in Jamaican rum barrels, which obviously you can totally smell. 923 00:42:39,840 --> 00:42:41,799 Speaker 1: As soon as we poured this beer, it smelt like 924 00:42:41,840 --> 00:42:44,080 Speaker 1: we were I mean, it smelt like we had like 925 00:42:44,120 --> 00:42:46,960 Speaker 1: a little sniff ter of Jamaican rum. At least it 926 00:42:47,160 --> 00:42:50,399 Speaker 1: did for me. Yeah, no, I agree, incredibly strong from 927 00:42:50,400 --> 00:42:52,279 Speaker 1: that standpoint, it definitely picked up a lot of those 928 00:42:52,480 --> 00:42:55,880 Speaker 1: rum characteristics but then aged on whatever exotic would This 929 00:42:56,000 --> 00:42:58,759 Speaker 1: is from Brazil, but it gave it this incredibly rich 930 00:42:59,120 --> 00:43:02,520 Speaker 1: depth of this umplex flavor profile for a style of 931 00:43:02,520 --> 00:43:04,160 Speaker 1: beer that we don't often have here on the show. Jill, 932 00:43:04,200 --> 00:43:06,160 Speaker 1: this is an Imperial brown, and so it has a 933 00:43:06,239 --> 00:43:09,200 Speaker 1: lot of those dark qualities that you get out of 934 00:43:09,239 --> 00:43:11,319 Speaker 1: the stout, but with some nuance, right like kind of 935 00:43:11,360 --> 00:43:13,600 Speaker 1: like a almost picture like a brown oatmeal cookie with 936 00:43:13,680 --> 00:43:16,880 Speaker 1: raisins as opposed to kind of like dark chocolate and 937 00:43:16,960 --> 00:43:19,160 Speaker 1: roasted coffee, which is typically what you get with like 938 00:43:19,160 --> 00:43:21,840 Speaker 1: a Russian Imperial. But it's a nice way to incorporate 939 00:43:21,840 --> 00:43:24,640 Speaker 1: some of those flavors without completely going off the deep 940 00:43:24,680 --> 00:43:27,040 Speaker 1: end when it comes to kind of the roasty toastiness. Yeah, no, 941 00:43:27,080 --> 00:43:28,799 Speaker 1: I agree, And and I think it had a lot 942 00:43:28,840 --> 00:43:31,400 Speaker 1: of like rum sweetness going on to write it was, 943 00:43:31,480 --> 00:43:33,120 Speaker 1: which I know you're not a huge fan of. No, 944 00:43:33,239 --> 00:43:35,120 Speaker 1: I like, I like rum, and I don't mind some sweetness, 945 00:43:35,160 --> 00:43:37,879 Speaker 1: and and honestly, like I love a good brown ale, 946 00:43:37,960 --> 00:43:40,760 Speaker 1: but there aren't many great ones being made. There's aren't 947 00:43:40,760 --> 00:43:42,919 Speaker 1: many brown ailes out there in general. Needs to happen more. 948 00:43:43,000 --> 00:43:45,040 Speaker 1: I feel like brown Ales were like probably you know, 949 00:43:45,080 --> 00:43:48,000 Speaker 1: one of the absolute first craft beer styles that I 950 00:43:48,040 --> 00:43:50,680 Speaker 1: got into. Now with ip as being all the rage, 951 00:43:51,200 --> 00:43:52,799 Speaker 1: they don't make this kind of nobody makes them. They've 952 00:43:52,840 --> 00:43:54,279 Speaker 1: kind of taken over. Did you ever drink I think 953 00:43:54,280 --> 00:43:57,120 Speaker 1: it was called turbot Dog by a Beda. I'm sure 954 00:43:57,120 --> 00:43:58,840 Speaker 1: I did. That was like a beta back in the 955 00:43:59,040 --> 00:44:00,360 Speaker 1: I mean, they probably still do, but they have like 956 00:44:00,400 --> 00:44:02,480 Speaker 1: Purple Haze and some of these other beers. But Turbo 957 00:44:02,560 --> 00:44:05,960 Speaker 1: Dog was a beer when I once I graduated college, 958 00:44:06,080 --> 00:44:07,719 Speaker 1: I was living with a buddy of mine up in 959 00:44:07,760 --> 00:44:10,200 Speaker 1: North Carolina in the woods. That was a beer that 960 00:44:10,200 --> 00:44:13,040 Speaker 1: I found myself gravitating towards. Uh, And that's when I 961 00:44:13,040 --> 00:44:15,239 Speaker 1: discovered shower beers, and so I would have a I 962 00:44:15,239 --> 00:44:17,600 Speaker 1: would have a nice Turbo Dog. They're up in the 963 00:44:17,600 --> 00:44:19,680 Speaker 1: mountains of North Carolina with snow on the ground outside, 964 00:44:19,719 --> 00:44:22,279 Speaker 1: and we would crack open the window to our There's 965 00:44:22,320 --> 00:44:24,680 Speaker 1: an actual window in our shower and you could open 966 00:44:24,680 --> 00:44:27,480 Speaker 1: it up and literally see the snow falling. I'm in 967 00:44:27,480 --> 00:44:29,359 Speaker 1: a hot shower and I've got my cold beer. It's 968 00:44:29,440 --> 00:44:31,320 Speaker 1: kind of like the perfect and the perfect mix, like 969 00:44:31,360 --> 00:44:34,600 Speaker 1: the simple pleasures in life, right, there, man, everybody needs 970 00:44:34,600 --> 00:44:36,520 Speaker 1: a good shower beer every day. And then yeah, well 971 00:44:36,520 --> 00:44:38,319 Speaker 1: I would I would say I think this one was 972 00:44:39,080 --> 00:44:42,560 Speaker 1: truly great beer from two great breweries, and I'm so 973 00:44:42,600 --> 00:44:45,239 Speaker 1: glad to have another Brown Ale because yeah, it's like 974 00:44:45,239 --> 00:44:47,879 Speaker 1: a blast from the past. But this is like way 975 00:44:47,920 --> 00:44:50,400 Speaker 1: better than the Brown Nails I was drinking when I 976 00:44:50,440 --> 00:44:52,080 Speaker 1: was like, I don't know, like ten years ago. So 977 00:44:52,200 --> 00:44:54,080 Speaker 1: the Rednols would use a drink or like, you know, 978 00:44:54,200 --> 00:44:56,920 Speaker 1: they got their high school diploma. This Brown Hiles got 979 00:44:56,920 --> 00:44:59,960 Speaker 1: like his PhD. It's a whole another level exactly. Yeah, 980 00:45:00,160 --> 00:45:02,640 Speaker 1: but huge thanks to friends of the show Nathan for 981 00:45:02,840 --> 00:45:05,400 Speaker 1: picking up some of these and sending them our away. 982 00:45:05,440 --> 00:45:07,120 Speaker 1: Thank you, all right, Matt, that's gonna do it for 983 00:45:07,160 --> 00:45:09,600 Speaker 1: today's episode. For listeners who want more information about this 984 00:45:09,640 --> 00:45:11,960 Speaker 1: episode and just kind of more information about what we're 985 00:45:12,040 --> 00:45:13,239 Speaker 1: up to here at how the Money, you can check 986 00:45:13,280 --> 00:45:15,920 Speaker 1: out our website at how to money dot com. That's right, man, 987 00:45:16,080 --> 00:45:18,319 Speaker 1: and that's gonna be it. So until next time, Best 988 00:45:18,320 --> 00:45:20,160 Speaker 1: Friends Out, Best Friends Out.