Sedona Arizona

Welp, looks like we're in it...


Looks like we’re in it… you know, the dreaded “it”.

Bear market territory

The S&P 500 has officially entered bear market territory. Gains in the index going back to the end of January 2021 have been taken off the table.

So, let’s take a moment and get some perspective. Though it feels terrible now, if we zoom out a little the market is still on a strong multi-year run:


For those of us who have been invested in the market for longer than the past two years, 2022 has been the spoiler we knew was coming.

For the estimated 20 million people who opened brokerage accounts in 2020 and 2021, this year simply doesn’t make sense. Stocks are down big and crypto has cratered.

And, if you entered retirement over the past two years, you’ve watched your income stream jump up and then dip in a big way.

Should you change your investments?

The quick answer: It depends on several factors.

First, what’s your risk number? How much volatility should you be willing to accept and for how long?

Next, what is the purpose for your investments?

If you have a long time frame and own good investments, you probably shouldn’t change very much beyond a tactical rebalance. Those with taxable accounts may consider whether they need to take losses for a specific reason.

If you are retired, you may consider dialing back risk exposure in favor of total return or other income-focused investments. You might even increase cash reserves to cover the next 6-8 months or so of expenses. If possible, take distributions from other assets for a period of time to further slow portfolio drain.

Right now there are very few parts of the entire market that are generating positive returns. Those areas will become crowded trades and therefore subject to sharp price declines as the market eventually recovers.

There’s no V-shaped recovery coming around the corner. Selling out and sitting in cash is not a good strategy. We’re going to have to ride this one out.

Staying invested in bear market territory can be a challenge. Learn more about the Life Moves Wealth Management investment philosophy here.

Life Moves Wealth Management is a registered investment advisor offering advisory services in the States of Arizona and Indiana, and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Information contained on this site should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.

The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal any performance noted on this site.  

HYPERLINK DISCLOSURE – The information being provided is strictly as a courtesy/convenience. When you link to any of the web sites provided here, you are leaving this website and assume total responsibility and risk for use of the web sites you are visiting. We make no representation as to the completeness or accuracy of information provided at these websites. Life Moves Wealth Management is not liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technology, web sites, information and programs made available through this website. Life Moves Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Life Moves Wealth Management’s web site or incorporated herein, and takes no responsibility thereof.

Author: Dale Shafer II, CFP®, APMA®, CDFA®

The National Association of Personal Financial Advisors
The Society of Advice

This website uses cookies to make sure you get the best experience on our website. You can find more information under the Privacy Policy.