Markets dropped 1% and the headlines went wild. Andy and Adam cut through the noise to explain why this is completely normal, what the recent data tells us about stock picking versus index investing, and why all-time highs aren't something to fear.
They also tackle a critical retirement question: how do you know when you've saved enough to actually spend your money? Plus, Adam shares why a simple calendar exercise can show more about retirement readiness than most financial calculations.
We cover:
Why 31 down days per year is totally normal for markets
The surprising data on stock pickers beating the S&P 500
Why market concentration doesn't mean what you think it means
The psychology behind fearing all-time highs
How to know when you've accumulated enough wealth
The retirement planning exercise most people skip
Why spending decisions are art, not science
⏱️ Timestamps:
(00:32) Welcome
(02:14) Market volatility: what's actually normal?
(04:43) The surprising frequency of 1% down days
(06:22) Stock picker performance versus the S&P 500
(09:00) Why "stock picking" is too broad a category
(11:47) Understanding market concentration
(14:40) The psychology of fearing market tops
(18:22) Recency bias and the "Big Long" versus the "Big Short"
(20:43) When is the market ever calm enough?
(22:47) Book recommendation: The Art of Spending
(24:14) Retirement planning: the calendar exercise
(26:39) Next week: Medicare and ACA tax credits
(27:21) Podcast disclosures
Resources:
Follow Burney Wealth Management on LinkedIn | www.linkedin.com/company/burneywealthmanagement
Follow Adam Newman on Linkedin | https://www.linkedin.com/in/adam-newman-cfa-cfp%C2%AE-mst-ricp%C2%AE-cepa-48853916/
Follow Andy Pratt on LinkedIn | https://www.linkedin.com/in/andyjpratt/
Episode #16: The Psychology of Investing: Why We Make Bad Money Decisions | https://burneywealth.com/blog/behavioral-biases-investing-psychology-episode-16
Book recommendation: The Art of Spending Money: Simple Choices for a Richer Life by Morgan Housel | https://www.amazon.com/Art-Spending-Money-Simple-Choices/dp/0593716620
#MarketVolatility #StockPicking #RetirementPlanning #WealthManagement #InvestingPsychology
The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. This content is for informational and educational purposes only. It is not intended as personalized investment advice or a recommendation.