The US Is In A Bear Market

Automatic TRANSCRIPT

Yeah. We're in a bear market actually officially officially in a bear market when the market falls down to more than twenty percent from its highs last one we saw we almost were there are in two thousand eighteen so close. I mean Again not never to be flippant about this but the true last bear market was two thousand. Eight two thousand nine when stocks fell twenty percent and then by the way they went on to fall into their forty five percent after hitting that bear market the different this time obviously it's the krona virus and it's it's the cove in one thousand nine hundred and the impact that has having on Citizens of the world governments countries and businesses. But there were how fast this happened. Things falling just asked us ever ever Seen Days Sixteen Days Robert Wright in the previous record you know when it was it was like forty something days set in nineteen twenty nine so which nineteen twenty nine. If memory serves another not guess or so. This happened so fast. Much faster than two thousand eight much faster than even two thousand eighteen which was pretty fast. I mean when when the stocks fell almost twenty percent. That happened over the course of forty days or so so we saw this really quick reaction and then the difference. Of course there's so much uncertainty with what the impact of all this is going to be and this week we saw governments citizens people schools close here in the US. Italy BASICALLY SHUT DOWN. Its country and we're starting to see that now. Play into the psychology of investors and institutions by the way to not just individuals institutions. Actually more institutions. And just the the the impact this is having on the markets and we're seeing the small caps down Tw- More than twenty percent just this week just this week. They're down about twenty five percent so really. We had a nice bump on Friday but but a lot of volatility in the markets right. Yeah so we've been doing this show for about five years and so that means for about five years you've been saying you know this bull market. It's you know there's Gonna I mean. How often do we get a bear market every time you do right so are you happy? Now Bro are you happy. Finally you got your Bare Martin. I'm not happy I'm not happy. Here's what I here's what I am. A proud of that is a message. It's been from the Motley fool as well as this podcast. And that is these times. Do come you may not want all of your money in the stock market especially in terms of having an emergency fund any money you need in the short term. If you're retired have an income cushion I am thinking most mostly these days about the emergency fund thinking of those people whose jobs will be affected all the people at restaurants in the travel industry who worked at the sports arenas all these people who are going to see a significant disruption to their income and I hope they have an emergency fund and I hope the government steps in to help them as well. Unfortunately I think the stat bro. There's a significant amount of the population. That is that is Paycheck to paycheck. And you know barely has a few hundred dollars into the into that savings account. Emergency funds so hopefully a lot of listeners Over the years five years and twenty five years of the Motley fool is we've been talking about how to how to think about saving investing. Hopefully they they have followed along so this this will help cushion the blow a little bit. Yeah at the ascent. They did some research and they found that eighty percent of Americans aren't confident. They missed three paychecks. I mean at just that just hurts. You really feel for them scary. Also because now than the number is about eighty Eighty percent likelihood of of a recession sometime Globally in the next few months. Oh I it is going to be. As Robert said very disruptive sedan to so many lives especially those that are More tied to the Ghia economy Not Necessarily W. Two but much more ten ninety. Yeah I'll just point out that we actually devoted a whole episode to having an emergency find. It was early in two thousand nineteen when the federal government shutdown. We talked about the importance of emergency. And then where to turn once your emergency fund is gone so if you are in that position where you've run your bank account down. Look FOR THAT EPISODE. And we had some backup might decrease. Yeah so no. I don't had global pandemic in their office pool so why the bull market would come to an end. Why isn't that Bill Gates Bill? Bill Gates have been talking about for so he can he can afford it. He can pray for. He's going to be okay. Warren Buffet actually wrote about it back in one thousand nine hundred eighty seven so he also someone who eventually got arrays a long-term investors a long-term thinker

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