FAQ: Investing in Down Markets

It’s scary to invest right now! In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA, and Xavier Angel, CFP®, ChFC, CLTC answer listener questions on investing in down markets. Is it a good time to invest? Should I pay off debt with my investments instead? What happens if we have a recession?

Episode Highlights:

  • Erik and Xavier encourage everyone to submit podcast questions or feedback on their website. (2:00)
  • Xavier shares that the primary question he gets asked right now is whether or not people should pull back from investing given the economic climate and talks of a recession. (4:01)
  • Xavier mentions that although investment choices depend on individual situations, fortunes are made by entering the market at times like these rather than fleeing it. (4:28)
  • Xavier addresses the question of whether or not we are entering a recession. (9:40)
  • Xavier explains how long it takes to recover from a bear market. (11:23)
  • Erik discusses another frequently asked question: Is it a good time to invest, or should we wait a little longer for things to improve? (12:38)
  • Erik explains that although it may seem counterintuitive, when consumer sentiment is at its lowest, it is actually the perfect opportunity to buy stocks, based on historical market data. (14:22)
  • Erik believes that with investing, there is no such thing as a right or wrong answer all of the time. There may be better or worse responses, but it always depends on your personal situation. (20:18)
  • Erik explains the value of having a financial planner at your side, assisting you in making decisions that are aligned with your purpose, objective, and values. (27:53)

Key Quotes:

  • “Now’s a time where millionaires are made by going into the market rather than running from the market.” – Xavier Angel, CFP®, ChFC, CLTC
  • “Whenever you invest a dollar, you should have a purpose for that dollar.” – Erik Garcia, CFP®, BFA
  • “If history is a good indication of what’s going to happen in the future, the stock market’s going to recover eventually.” – Erik Garcia, CFP®, BFA

Resources Mentioned:

About Erik Garcia

Hi there, I'm Erik. How you manage your money and other resources impacts practically every aspect of your life. I help individuals and families invest plan for a more secure and predictable financial future. Thanks for taking time on my site!

Visit my website →