Nov. 1, 2022

The Increasing Drawdowns in the Stock and Bond Markets


The stock and bond markets have seen some wild swings over the past few weeks. This has caused large drawdowns in the stock and bond markets and a great deal of pain for international economies. While the increasing declines in the market may have a negative impact in the short run, they are likely to have a positive impact in the long run.

In this episode, Greg and Doug talk about how people feel about the current state of the market, the increasing drawdowns in the stock and bond markets, and update on the economic situation around the world.


Key Takeaways

  • [01:14] - Some good news in the market today.
  • [03:18] - How people feel about the current state of the market.
  • [07:05] - The impact of market volatility on someone nearing or in retirement.
  • [08:31] - The increasing drawdowns in the stock and bond markets.
  • [12:36] - What Greg and Doug think about where we are in the economic cycle.
  • [15:15] - An update on the economic situation in big countries.
  • [19:50] - The impact of the U.S. economy on international economies.


Quotes

[09:07] - "Besides the Great Depression, during which the stock market was down 90%, the bigger drawdowns that have historically happened in the U.S. stock market have been down 50%, 40%, etc. The bond market is not supposed to function like that from a volatility standpoint. But this year, the 20+ year treasury market is down negative 42%. That's unreal to think about." ~ Greg Stokes

[11:07] - "As far as the bond market is down as much as it is simultaneously with the stock market, that's unprecedented." ~ Greg Stokes

[17:33] - "When you have an economic downturn, at least historically, one way to combat it has been to cut taxes and spur economic growth." ~ Doug Stokes


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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.