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Bear With Us

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We are so excited to see the FWIW readership continue to grow! We would like to thank everyone who is sharing and [referring people to FWIW]. To everyone who has joined us in the past few weeks, welcome! If you are new, here are a few links to resources and past stories that you might find interesting:

Happy Thursday,

The biggest financial news story this week is that the stock market is, as the kids like to say, spiraling. Investors are hitting the panic button and selling as they take in a series of serious threats to the economy: a still-raging war in Europe, record-high inflation, supply chain shortages, rising interest rates (you will hear the term 75 basis points a lot this week…), and COVID cases climbing once again in many places.

Is a recession on the horizon? Many economists, Wall Street analysts, and company executives seem to think so. The S&P 500 index, regarded as a broad proxy of the US stock market, is in bear market territory as it’s down by more than 20% from its peak. Since the 1920s, the average bear market has lasted 19 months and dropped an average of 38% so there could be more turmoil ahead. Experts are also forecasting a “Crypto Winter,” and it’s pretty chilly already: the largest digital currency, Bitcoin, has lost half its value in the last six months, and it’s not even among the worst crypto performers.

The temptation to check your investing account multiple times a week (or day!) is natural, but whatever you do, don’t over react. It’s hard to watch and it’s even harder to keep investing, but experts say that the simplest path to long-term financial success is to protect your portfolio with the two sacred rules: diversification and rebalancing. Combine this with wearing sunscreen every day, and your future self will thank you.

News you can use

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  • Electric flying cars, an inflatable e-scooter that fits in your backpack, automated, sustainable greenhouses for the Earth and Mars, virtual concerts in the metaverse… These are some of the innovations being presented at the VivaTech conference in Paris, France this week. Grab a croissant and get a glimpse at the future of areas like low carbon, mobility, robots, and health.
  • Juneteenth is just around the corner. As many celebrate and take the day to reflect, it is also a great day to check that your investing is aligned with your values. There is a long way to go, but — as we noted a few weeks ago — many corporations are putting in place strong racial and ethnic diversity policies. Another option if this is an area you prioritize: Check out the NAACP Minority Empowerment ETF (NACP), created by a non-profit that tracks many of these companies.

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