In today’s episode of Matt’s Minutes, we were discussing bonds. While bonds may have disappointed us last year, it’s important to understand how interest rates impact the value of bonds and why they underperformed last year. In the video above, Matt explains this inverse relationship, and by understanding the dynamics of bonds, investors can anticipate how changes in interest rates may affect the value of bonds in their portfolios.
Market Related
News that is NOT Newsworthy
We all know there is news that is newsworthy and news that is not newsworthy. In this episode of Matt’s Minutes, we are discussing market volatility and why it’s NOT newsworthy. In this video I share an interesting visual that shows intra-year declines, which are the largest stock market drops during the year. These declines happen regularly and are a normal part of the market’s behavior. Understanding this pattern can help investors make informed decisions and avoid unnecessary panic.
Shoulda, Coulda, Woulda
In this episode of Matt’s Minutes, we dive into the exciting news: we’re officially in a bull market! A bull market is defined as a 20% rise in the stock market, but many investors who sold during the market downturn might be wondering, “What if I had held on?” Staying invested during a market decline can be psychologically tough, but it can also be financially rewarding in the long run. Watch the video above to learn why patience pays off and how staying the course can lead to better outcomes.
Is hindsight really 20/20 vision?
In today’s episode of Matt’s Minutes, we’re diving into the concept of hindsight and asking, “Is it really 20/20?” While hindsight gives us a clearer view of past decisions, the decision-making process itself is what truly shapes our outcomes. In this video, Matt explores how seeking wise counsel can lead to more informed choices and better results. If you’re navigating important decisions, don’t hesitate to reach out for the support you need on your journey.
The Pain of Loss vs. The Pleasure of Gains
In today’s episode of Matt’s Minutes, we dive into the concept of loss aversion—a powerful psychological principle that explains why the fear of losing often outweighs the pleasure of winning. A study referenced in this video reveals that, on average, people need to win twice as much as they lose to justify participating in any venture with risk. In other words, the emotional sting of a loss can be twice as painful as the thrill of a win.
Understanding loss aversion is crucial in assessing your risk tolerance—how much risk you’re willing to take in your investments and financial decisions. This episode will provide valuable insights into how this behavior impacts the way we approach investing.
To help you assess your own risk tolerance, we’ve attached a unique and fun risk questionnaire for you to take. By answering a few simple questions, you’ll gain a better understanding of your personal appetite for risk. After completing the questionnaire, feel free to email us your risk score or letter at Help@rossfinancialinc.com—we’d love to hear your results and help you apply them to your investment strategy!
Thoughts On The Debt Ceiling
In today’s episode of Matt’s Minutes, we’re diving into the topic of the US debt ceiling, a headline that has been making waves in the news lately. But what does it really mean for you as an investor, and should it be a cause for concern? We’ll break down what the debt ceiling is, how it impacts the economy, and what you need to know to stay informed and make smart decisions in these uncertain times. Click the video above to gain clarity and insights on this important issue.