šŸ½ļø Donā€™t Panic! Hereā€™s How to Survive a Market Drop

Plus: Dealing with an audit, the market's next move, best things to buy in April and more...

Together With

Hey Future Funders family,

Scottie Schefflerā€™s first to be born child held out after all, letting their soon to be dad snag another green jacket at yesterdayā€™s Masters Championship at Augusta. While he was fully committed to leaving the tournament to be by his wifeā€™s side should she have gone into labor (even if he was in the lead)ā€¦ we have to askā€¦

What would you do?!

Poll below, leave comment for context.

Ok, letā€™s get to it.

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Headlines That Matter

šŸ§¾ Inflation. The Consumer Price Index made headlines by showing that average consumer prices rose +3.5% in March vs. a year prior which came in above expectations and ticked up from +3.2% in February. Wholesale prices, or the Producer Price Index, also rose +2.1% in March from last year which was above February at +1.6%.

Our take: We thought this interview with Larry Summers, former Treasury Secretary, is worth the watch (teaser: he discusses the possibility that the next interest rate move will be up vs. down). And why do we care about Mr. Summers opinion? Well, he was the first to sound the alarm on our current inflation ā€œsituationā€ when everyone else was calling it ā€œtransitoryā€ (ya, remember that?). And we actually think he makes some very valid points. The one thing though that could change this picture would be an American economy stumble, which is still a possibility (just ask Jamie Dimon of JP Morgan who remained cautious during his companies earnings report this week).

šŸ“ˆ Markets during war time? The S&P 500 fell 1.5% on Friday and was down for a second straight week due to inflation worries (see above) and increasing geopolitical tensions that only seemed to escalate over the weekend. Geopolitical events like war can give a sudden shock to markets (they hate uncertainty), but looking back at history since Pearl Harbor, there usually isnā€™t a sustained dip and markets tend to rebound quickly.

Our take: When it comes to world events like war, investors typically place more money in safer assets like bonds (we talk about that more in our course) with the momentary panic usually subsiding in a short time. Thatā€™s why we wanted to write this week specifically about actions you should take (below) on a stock market drop to help you come out ahead.

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Money Topic In Focus

To The Moon Wow GIF by MSNBC

Overcoming Investment Drops

šŸš€ Whatā€™s happening: Every investor's nightmare: a sudden market drop.

Maybe your investments are down a few dollars. Or maybe itā€™s more like 10% or 20% more of the savings youā€™ve worked SO hard to build. Whatever the case, it stings. 

But what if we told you this could be an opportunity in disguise? We know, itā€™s probably not what you want to hear right now.

The instinct to react, to do somethingā€”anythingā€”to stop the bleeding, itā€™s incredibly strong.

So, weā€™ve created a step-by-step plan for how to react to, or, better yet, not react to, a drop in your investments. And weā€™ve saved the best nugget of wisdom for last. 

Ready to take a look?

Dinner Discussion ā“

What is the stock market's more likely next move?

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See last weekā€™s poll results below.

Deals, Reads, and Other Findsā€¦

šŸ” Thinking of moving? Wondering which states offer the best cost of living vs. the current average wage? This was a handy guide we found to break it down

šŸ’ø Return on education. Fascinating video on what universities offer the best ROI for a student. Hint: public colleges come out ahead.

šŸ“œ Quote Of The Week

ā€œRecipe for Iced Coffee

1. Have kids

2. Make coffee

3. Forget you made coffee

4. Drink it coldā€

-Unknown

Dinner Discussion ā“

Last weekā€™s question: Are you satisfied with your retirement savings progress today?

Results: 67% of you said you were satisfied with your retirement savings which already is much higher than the average household survey in the US (so great work!). Check our IG stories to see what people had to say.

How'd we do this week?

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