Podcast Episode Details

Flight #47: Charlie and Rob's Top 5 (Personal) Lesson's Learned from 2022

Season 1 Episode 47

Q&A: Most common client questions lately:

The whole world is going into a recession!

What is a recession? Schwab "dominoes" diagram...there's only a few things missing to be in a recession – Labor market weakness, EPS growth falls, NBER (Nat'l Bureau of Economic Research) recession declared.

See Flight #33 for "Inverted Yield Curve – Canary in the Coal Mine."

• https://podcasts.apple.com/us/podcast/inverted-yield-curve-canary-in-the-coal- mine/id1557278856?i=1000564180334

So, what does this mean...mild recession. Already priced in?

• See DFA "...Official Announcements" graphic

Why should we stay in the market? Why would we keep investing?

• 1st - gotta have a plan...context for why you're doing what you're doing.
• Flight #43 Appolo from DFA
  • https://podcasts.apple.com/us/podcast/flight-43-with-dimensional-fund-advisors- vice/id1557278856?i=1000585072712

What if I'm near retirement?

• Podcast/Flight #45 Sequence of Return Risk
  • https://podcasts.apple.com/us/podcast/flight-45-what-is-sequence-of-returns-risk- and/id1557278856?i=1000588498807

What are the positives to the current environment?

• No more quantitative easing.
  • "The Fed is propping up the markets/economy"
• Higher future returns expected...fairly valued equities?
• Higher yields on cash – great for short-term savers and retirees.
  • 4%-5% - CDs, T-Bills, Annuities
• Housing was getting out-of-control – would soon become unaffordable for most Americans.
• Two jobs for every one person is not a healthy job market.
• The Fed is fighting inflation! That's the real risk...unlike the Fed of the 70's.

So, what do we do...as investors

• Stay globally diversified, don't chase trends or recent trends, performance.
  • Bonds are back!
• Quality investments: Profitability, Dividends...
• Improve your balance sheet
• Prepare/Insure for deep risks...
  • Flight #42
    • https://podcasts.apple.com/us/podcast/flight-42-why-is-the-fed-driving-us-into-a/id1557278856?i=1000583422605

Lessons Learned from 2022:

1. Rob's Lesson Learned:
   1. Identify and accept what I cannot control. And realize that the only thing that I can control is how I react to the situation.
      1. When experiencing difficult times with family health it would be easy to get angry, frustrated and allow negative emotions to be destructive to yourself and those around you.
      2. Instead, make a disciplined decision (with help from trusted friends, loved ones) to have a positive attitude and make the best of a difficult situation.
      3. When going through difficult times thing about: "What does this make possible?" In Rob's situation, he was able to spend focused time with his son and get help from the doctors that may improve his son's health.
2. Charlie's Lesson Learned:
   1. Time is the most valuable, precious resource. Become a protector and defender of your time.
      1. Time goes by so fast, take the time and be intentional about the i

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         Published on 2 years, 11 months ago