Listen to Ryan and Gabe explain why you don’t need to be worried about the current state of the market and interest rates.
Are you Panicking about higher rates and the falling market? Don’t be, here’s why:
In the short-term these kinds of markets can feel painful with the S&P 500 down a couple weeks in a row and interest rates climbing. Bad news just seems to never cease out of the federal government. We think, short-term, as much as there is pain involved, allows for long-term to investments to have very high fixed income rate of returns. These are risk-free rate returns that are much higher than we have seen at any point in the last decade.
Stock Market Opportunities
For someone who is looking for opportunities in stocks, we are in a bear market, so we are buying stocks at a much lower evaluation then we were nine months ago. Long-term, we think this will allow us to gain a lot from everything going on. Bear markets aren’t fun. They’re defined when the market has dropped 20% or more. We have seen three of those instances over the last four years.
Long-term, the higher interest rates will allow for greater opportunities that we want to capitalize on. These opportunities will be great for retirees because we have safer areas to make some money for our clients.
If you have any questions or concerns on the market, retirement planning, or any other financial questions, reach out to Strategic Retirement Plans.