🐻 Navigating the Pain of Your First Bear Market

Plus: Third Quarter 2022 Economic and Market Review

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Markets

Stocks fall after Ukraine attacks (4 minute read)Global shares fell on Monday after a series of explosions in the Ukrainian capital and renewed concern about the economic outlook sent investors into safe-haven assets such as the dollar and bonds. Any belief that the Federal Reserve will shift to a softer stance towards monetary policy was extinguished on Friday by data that showed unemployment fell in September, signalling a labour market that is not suffering from red-hot inflation.

Third Quarter 2022 Economic and Market Review (18 minute read)Larry Swedroe, Chief Research Officer at Buckingham Strategic Wealth wrote a great article last week that covers all of the factors contributing to slow economic growth, whilst highlighting that not everything is bad and what this means for the US economy. 

Oil falls as investors take profit amid China demand concerns (3 minute read)Oil prices fell on Monday, snapping five days of gains, as investors took profits after a report on slowing economic activity in China, the world's biggest crude importer, re-ignited concerns about falling global fuel demand. Services activity in China during September contracted for the first time in four months as COVID-19 restrictions hit demand and business confidence, data showed on Saturday.

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Investing

How To Buy Treasury Bonds And Buying Strategies To Consider (14 minute read) With U.S. Treasury bond yields zooming higher, the interest in buying Treasury bonds has followed suit. Treasury bonds are risk-free investments if you hold them until maturity. Treasury bonds are issued by the United States federal government to finance projects or day-to-day operations. As inflation and inflation expectations rise and fall, so do Treasury bond yields.

Navigating the Pain of Your First Bear Market (4 minute read)Inflation is raging at 40 year highs. Interest rates are rising at their fastest pace in history. Federal Reserve officials are actively rooting for the stock and housing markets to crash. The Fed is trying to orchestrate a recession. Yet the S&P 500 is down just 21% or so from its all-time highs. That’s not even an average bear market. Maybe we have further to fall. Maybe not. But either way, if you’re going to invest in stocks you have to get used to this.

Why the Falling Housing Market Won't Be Great for Buyers or Sellers (9 minute read)The housing market is having a bit of a Dr. Jekyll-Mr. Hyde moment. On the one hand, buyers are finally getting some relief from the skyrocketing prices and break-neck selling speeds of the last two years. On the other, mortgage rates are soaring — reducing affordability and keeping would-be sellers on the sidelines. The result is a market that’s better for some, worse for others and, well, not really ideal for anyone.

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Money

It’s Time to Rethink Retirement (4 minute read)The structure of modern life and retirement started in the 19th century, when the Prussian statesman Otto von Bismarck implemented the first national old-age social insurance plan in 1889. The sociologist and economist Mauro Guillen wrote a book called 2030: How Today’s Biggest Trends Will Collide and Reshape the Future, where he touches on the stages of life. The book, published in August 2020, and written before the pandemic, is an interesting take on where current trends might be going.

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Best of Twitter

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If you are interested in learning Macroeconomics, this is a great list to start.

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Wisdom Of The Week

“Listening to uninformed people is worse than having no answers at all.”

Ray Dalio

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