There were 34 bear markets in the 115 years between 1900 and 2015 – on average they happened once every 3 years. More recently though, they have been less frequent. In the 70 years since 1946 there have only been 14 bear markets, so one every 5 years. Historically the S&P 500 has dropped by an average of 33% during bear markets and in over a third of those markets the drop was more than 40%. The good news is bear markets don’t last. The average lasts about a year with the shortest being 33 days (2020) and the longest being 694 days.

Recently we received an email from a client that they had found a new car, were going to put some cash down and finance the rest. The email was written in the same tone this client would normally use, the car is one I could see the client driving and there were other details specific to this client’s financial situation. The client indicated they would need cash from their investment account transferred to the dealer for the down payment. We discussed which account was best to draw from and were prepared to send the money. The client then emailed over the wiring instructions for the deposit.

With the holidays around the corner, big purchases are looming, and we would love to discuss whether financing or cash is your best option.

This future problem may become an immediate problem, forcing us to act quickly to protect

At some point in everyone’s life, there is a somber realization that Uncle Sam is going to get his cut of your hard-earned dollars. The only remedy for this situation is often expressed in the old saying…“It isn’t how much you make, it’s how much you keep”.

We know it is a scary and unprecedented time, but with cautions and proper research, you too will have a great time!