If You Are Not Freaked Out, You’re Not Paying Attention

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If You Are Not Freaked Out, You’re Not Paying Attention

What’s the best advice now: STOP PAYING ATTENTION. For people who might retire soon or are being forced to retire by their job situations, it’s scary, but remember retirement should last 20-30+ years, and the market will recover in that period (and correct again several times, probably). You should definitely do your annual check-in with your planner to rebalance when necessary, though.

We are not market timers at Fearless Finance. We buy in an allocation of index funds that makes sense for your phase of life and risk appetite and we HOLD until your phase of life changes. We don’t trade because of the “crazy” in the markets.

It’s possible that the markets will fall further before we start to see things moving up again. There is simply too much uncertainty around tariffs and other policies. Do not panic sell. Look away and HOLD is the recommendation.

There is some chatter about stagflation (inflation going up and economic growth going down). We are NOT in a stagflation situation, and hopefully we won’t be. We do not expect the Fed to cut rates in May, but if it sees the economy entering a recession (negative growth for 2-3 consecutive quarters), it will probably cut rates.

We wish there was more wisdom to share, but we do know and believe that retail investors will NEVER sell at the top and buy at the bottom. There’s too much emotion and bias for a regular human to get that right. As a result, HOLDING is the best course of action.

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