{"id":1930,"date":"2022-05-28T02:35:06","date_gmt":"2022-05-28T02:35:06","guid":{"rendered":"https:\/\/www.gunderwealth.com\/?p=1930"},"modified":"2022-05-31T18:58:00","modified_gmt":"2022-05-31T18:58:00","slug":"navigating-the-market","status":"publish","type":"post","link":"https:\/\/www.gunderwealth.com\/navigating-the-market\/","title":{"rendered":"Navigating the Market"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”Section” _builder_version=”4.16″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row admin_label=”Row” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/www.gunderwealth.com\/wp-content\/uploads\/2022\/05\/Untitled-design.png” alt=”Navigating the Markets” title_text=”Navigating the Markets” align=”center” force_fullwidth=”on” align_tablet=”center” align_phone=”” align_last_edited=”on|phone” _builder_version=”4.17.4″ max_height=”800px” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Text” _builder_version=”4.17.4″ ul_line_height=”1.7em” header_line_height=”1.5em” header_3_line_height=”1.5em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Let\u2019s Start with The Soft Stuff\u2026<\/strong><\/h3>\n

In every bear market, diversification comes into question. In 2008 it was housing. This time around, it\u2019s bonds. It\u2019s not typical to see stocks and bonds go down simultaneously. Does that mean diversification is dead?\u00a0 Or are we here because the pandemic sent interest rates to historic lows and inflated the money supply and now the economy is normalizing? How are we navigating the market from here?<\/p>\n

The opposite of diversification is concentration. Concentration in your portfolio can make you wealthy overnight, but it can also make you poor just as quickly.<\/p>\n

You likely have one of two emotions: FOMO (fear of missing out) or TGINIT (thank God I\u2019m not in that). The latter is more popular these days.\u00a0 Our focus is to maintain a diversified portfolio, acknowledging that different sectors come in and out of favor at unpredictable times. Attempting to minimize volatility in this way helps minimize these emotions.<\/p>\n

In every bear market, it\u2019s hard to see the end.\u00a0 <\/strong><\/h3>\n

With the Fed raising rates, inflation, China\u2019s pursuit of \u201cZero Covid,\u201d the war in Ukraine, labor shortages, and supply chain problems \u2013 it\u2019s hard to see what needs to give for optimism to improve. \u00a0Despite the negative headlines, positives include companies reporting strong balance sheets flush with cash, low unemployment, and credit in the municipal bond market is as strong as ever.<\/p>\n

It\u2019s pointless to say we\u2019re \u201ccautiously optimistic\u201d because that\u2019s just a safe way of saying we don\u2019t know what\u2019s next. Investing in the markets is uncertain.<\/strong> Because of that uncertainty, there\u2019s a positive premium when investing in the market vs. risk-free assets. By investing in the market, we\u2019re betting on human ingenuity to solve problems, adapt, and innovate.<\/p>\n

We can say confidentially that every bear market presents a buying opportunity (until the next one, of course). It won\u2019t last forever, even though it feels like it.<\/p>\n

Items to Tackle Now<\/strong><\/h3>\n