IBJ Podcast: How to survive 2022’s volatile stock market

From IBJ’s Podcast Announcement: There are few things more disturbing than watching your retirement savings evaporate over the course of a few weeks because the machine you trusted to build it up has decided to tear it down. The first month of 2022 has been one of those months on the stock market, made even more frustrating in light of the absolute killing investors made in 2021 against any rational human’s predictions. We were slammed by two COVID surges, record inflation and another year of supply chain disruptions—and by the end of 2021, the S&P 500 had gained a mind-blowing 26.9%. But now the folks who are nearing retirement are banging their heads against their kitchen tables for staying a skosh too long at the party. It is notoriously difficult to accurately divine why the stock market reacts as it does from day to day, but we know that earlier this month investors were very anxious about what the Federal Reserve would do to try to put the brakes on inflation. On Wednesday, Fed Chair Jerome Powell confirmed that the Fed would have a more aggressive plan for raising interest rates, with hikes beginning in March. This obviously scares some investors, and then other investors see their retirement fund balances start to drop and they get scared and start thinking about making changes, and, well, it’s not pleasant for anybody. For the latest edition of the IBJ Podcast, IBJ investing columnist Mickey Kim weighs in. He definitely believes that anyone hoping for another 2021 is going to be sorely disappointed and that the market this year is going to be more turbulent. You do need to have a guiding philosophy for your investing, and Mickey shares his in our interview: “Don’t just do something; stand there.”

The opinions expressed in this podcast are those of the participants as of the date the podcast was recorded. These opinions have not been updated or supplemented and may not reflect their views today. The information provided in these podcasts do not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular stock or other investment.