Becker Private Equity & Business Podcast
Market Gyrations and the Need for Allocation of Your Assets 2-1-25
Sat, 01 Feb 2025
In this episode, Scott Becker discusses market fluctuations, the impact of asset allocation, and the importance of long-term investing.
Chapter 1: What are market gyrations and their impact on asset allocation?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion, which is an ample one for this week, is sort of the the The sense of market gyrations and the need for allocation of your assets. So here's the discussion.
Chapter 2: Why is long-term investing important in fluctuating markets?
So this has been a fascinating day in the market and the kind of market day or week that reminds one of how important asset allocation is and how important time in the market is, long time in the market is. So here's the issue. Early this week, the market was routed. The NASDAQ down 3% to 4%. The S&P down 2.5% to 3% after the discovery of this deep seek thing.
Chapter 3: How did recent market events affect the NASDAQ and S&P?
Chapter 4: What lessons can we learn from recent market performance?
And so what's happened is we rolled forward five days. The NASDAQ for the week is down about a quarter of a point versus down four points. The S&P very similar is at the end of the day going to end the week just fine in the big scheme of things. And the Dow is going to end up 1%. Now,
If you have the wrong asset allocation and you're totally into something that you can't live with behaviorally, let's say you're totally 100% into equities, you might have panicked when the deep seat thing happened and the market dropped 4%. If you did and sold on that dip, you would have been in a horrible spot as the market ultimately ended up recovering this week.
If in contrast, you have a market allocation, let's say 50% stocks, 50% bonds that you could live with, you would have ended up the week basically even and not made the mistake of selling into the panic on Monday or Tuesday. I think it's a fascinating thing. And the real lesson here is the long-term is time in the market.
And the second thing is having an allocation you could live with so you're not tempted or you don't panic and sell into the dip when things go poorly. In any event, thank you for listening to the Becker Private Equity and Business Podcast. We are so thankful to our listeners.
We had literally a record month almost of downloads on the podcast, ranked in the top 10 a few days this week, number one on the Apple Business News Podcast. Thank you so much for listening to the Becker Private Equity and Business Podcast. Thank you.
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