This week on the podcast, we’re going to talk about stock market volatility and risk with two financial planning experts who deal with both on a regular basis as they work with clients. As of this writing (Wednesday), the S&P 500 is down nine percent – and that’s just today. The S&P is down about 25 percent from its peak in February and there’s no reason to think the market won’t fall further before it stabilizes.
In some respects, this episode is about fear. Plenty of retirement investors are experiencing it – fear about the market’s volatility, and the risks that poses to their retirement. And even more important is our fear about the future health of the economy, which is headed toward a steep recession induced by the health crisis.
My guests are two experienced financial planners. Allan Roth is the founder of Wealth Logic. Allan has been working in the investment world for decades in both corporate and personal finance. Also joining me is Jay Abolofia, founder of Lyon Financial Planning. Another interesting thing – Jay has an Ph.D. in applied economics. So, he brings a perspective to this that goes beyond just the markets.
Separately, check out my Reuters column this week on the same topic, and this one for The New York Times last week on market risk. The story poses this question: what if you just want to get out of the market entirely? Is that advisable? (Spoiler alert: my answer is “no.”)
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