SBV Curated Content | A Weekly Update of Enlightening & Intriguing Information | February 9, 2022
Businesses, Stock Markets & the Economy
“There are different levels of losses in the markets right now:
- If you own value stocks, it’s not too bad (down 2-3%)
- If you own an S&P 500 index fund, it’s a minor correction (down 6-7%)
- If you own the Nasdaq 100, it’s a correction (down 11-12%)
- If you own small caps, it’s a bear market (down 20% as of last week)
- If you own Facebook, it’s a 1987 crash (down 26% in a single day this week)
- If you own crypto, it’s a crash (down 40-60%)
- If you own certain hyper-growth stocks, it’s a depression (down 50-80%)
If you’re invested in one specific group listed here, you’re either doing not so bad or you’re losing your shirt.
But what if you have your investments spread across all or many of these assets?
Yes, you’re experiencing some pain in certain parts of your portfolio but there are other pieces that are picking up the slack.”
- Additional Reading: Interested in learning more about diversification as it applies to portfolio management? Then check out our article, What Other Single Action Can You Take to Simultaneously Dampen Your Exposure to a Number of Investment Risks While Potentially Improving Your Overall Expected Returns?
Over the past four decades, I’ve learned that the prime prerequisite for a successful portfolio is that it survives. (By William Bernstein on HumbleDollar and originally shared by Michael Batnick)
“The financial markets are a car that conveys your assets across town from your present self to your future self. The roads are slick with ice and studded with giant potholes. If you drive fast, you might indeed get to your destination a lot quicker. But it’s usually a bad idea.”
Your Finances & other Wealth Management links
Enjoying Life Now vs. Enjoying Life in the Future (Ben Carlson)
“I do think it’s important to enjoy your life when you’re young. I’m not a personal finance person who is going to tell you to make your own shampoo in your backyard and eat Ramen noodles every night so you can save every penny.
That’s no way to go through life. You’re going to regret it if you don’t have fun in your youth.
You just have the be mindful of the trade-offs involved and at least get the ball rolling when it comes to developing good savings habits.”
The Environment & ESG (Environmental, Social & Governance) Investing
Nano-sized plastics are pretty much everywhere. (fastcompany.com)
Florida’s bonefish are full of human pharmaceuticals. (hakaimagazine.com)
The story of relocating endangered sea turtles. (hakaimagazine.com)