Keep Score | Stock Market & Conversations

Games, Keeping Score, and Winning

I like to describe our relationship with money with the question, “What game am I playing?” In a sense, we’re all personally playing financial games. We have definitions of success:

Early retirement
A second home
Debt-free kids
Paying the lowest taxes
etc.

When we view our financial life through the lens of a financial game, we begin to ask questions like:

How do we keep score?
What are the rules?
What does winning look like?
Are we content?

Without clear measures, it’s easy to drift, follow someone else’s rules, or set the bar too low.

That’s why one of the first things we want to help you do is identify your core values, define your rules, and ultimately aim to win the game that’s right for you.

Stock Market Volatility: Thursday marked another big down day with stocks officially falling into correction and the S&P 500 down more than 10% from the February 19 peak. Seasonally, February and March tend to be weaker times of the year. Additionally, 10% corrections tend to happen once a year on average:

As we often say, our strategy remains the same amid a downturn—we keep our eyes on long-term investing, and we diversify. Yes, the S&P 500 has experienced a 6% YTD selloff, but as we’d expect, bonds are up as well as our Treasuries exposures. The most helpful asset class for us has been our developed international exposure which is up over 5% YTD. Yet, this is another healthy reminder for all that our active diversification brings in times like these.

The question many wonder, then, is whether this will turn into a bear market. Anything is possible, of course, but history is a good teacher. The graphic below does a nice job of adding some additional perspective from market history.

If you are curious about your current portfolio, have questions about your financial plan, or have questions of any kind, you know where to find us.

Dinnertime Opportunity: A recent survey from YouGov revealed that 63% of Americans watch TV while they eat dinner. 41% talk to the people they’re with, and 28% look at their phones. Adults under 30 are more likely to look at their phones than older Americans (42% vs. 24%):

The data speaks for itself, but let’s work together to perhaps change the norm. Every day we have the opportunity to invest in what matters most—the people around us. We regularly share conversation starters to talk with your kids (or anyone!) about values, purpose, and legacy. Here are a few more suggestions:

What are you excited the most about right now?
What gives you the most joy in life?
What’s something that makes you feel proud of yourself?
What area of life is the most challenging for you right now?
Do you think it’s important to be generous with others? Why or why not?
Do you think people can be wealthy without having a lot of money? Why or why not?

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website at https://adviserinfo.sec.gov/firm/summary/166418. Past performance is not a guarantee of future results.