It’s natural to think “defense” during a bearish market season. But why not mix in some “offense” with your defense? Here are three moves we can discuss together that may be helpful during the current market downturn.
I’m confident we’ll see a brighter economic picture before too long. In the meantime, it’s a shrewd move to find ways to better your position, and I’m always available to help you think it through.
1. Yahoo Finance showed the S&P 500 at 3020.97 on June 24, 2019, and 3,911.74 on June 24, 2022. Past performance does not guarantee future results, individuals can’t invest directly in an index, and the return and principal value of stock prices will fluctuate.
Series I savings bonds are a low-risk savings product that can be a hedge against inflation. Their principal and interest are guaranteed by the federal government, however, they are not FDIC insured. Their annual interest rate is derived from a combination of a fixed rate and a variable semiannual inflation rate, which is set based on changes to the CPI-U. Interest earned is subject to federal income taxes unless used for qualified education expenses, but not state or local income taxes, and is paid when the bond is cashed. The I Bonds must be held for at least one year, and if cashed in before five years, the last three months of interest is forfeited. The bonds earn variable interest for 30 years if not cashed before they mature. There is an interest rate risk and opportunity risk where I Bonds are particularly susceptible during periods of low inflation and the rare instances of deflation. Past performance does not guarantee future returns. Investors cannot invest directly in an index.
3 Shrewd Maneuvers in a Down Market
June 28, 2022