Current Market Review
Watch our video on the market performance for the week of January 24th.
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WEBVTT
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Hey everyone, and welcome to the buy the numbers
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for the week of January 24th.
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It's been a cold couple weeks in Michigan.
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The only thing colder has been the market performance.
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So with that, I thought we'd talk about it a little bit.
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What you see in front of you is, uh, from our friends at MFS
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and it shows, uh, about the last 10
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or so, um, market declines from the 1930s
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to 2020.
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And one of the things I always like to point out,
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it always feels worse when you're right in the middle of it.
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Now, the markets roughly through today, the s
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and p specifically is down about 9.5% year to date,
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which is actually quite common.
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Um, you know, a market drop of 10%
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or more typically happens up to twice a year.
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We were very fortunate last year,
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it was pretty much just straight up.
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This is a very regular common cleansing occurrence.
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Now, when you look further at this,
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although it's scary when you're in the middle of it,
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if we go back to the.com bubble, for example,
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it took 39 months to hit.
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Bottom, bottom was a 49% drop.
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But the one year filing, the markets were up 34%.
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The five year return was a hundred percent,
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and the 10 year return wasn't, was, you know, 86%.
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Uh, the global crisis, as everybody remembers, 2008,
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those were three of the worst years.
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I remember 57% drop took 17 months to get there.
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So it was pretty fast and furious.
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One year later, 70% return,
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five years later, 10 years later.
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So three really strong years followed that.
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Of course, we had the, uh, COVID crisis, we'll call it,
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of 2020.
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That was very fast, about a month to drop, 34%.
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That was the trial. And then we've been on a recovery since,
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uh, last year was a, was a fantastic year,
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but from, you know, that march to march, um,
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very significant return.
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So I say that just as a reminder, you know,
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these are not uncommon events.
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These are common normal cleansing,
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and the only ones who, uh,
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get hurt when they're on the rollercoaster are the
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ones who try to get off early.
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If you stay on the rollercoaster,
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it ultimately brings you back to the spot.
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So keep that in mind.
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We're here to answer any questions that you have, um,
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but might not be a bad idea to turn off the news
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and just go about your business and not worry so much.
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As always, thanks for watching.
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Appreciate your business and trust
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and look forward to hearing from you.