It’s looking scary out there.
Since mid-August, the S&P 500 has dropped 14%; the tech-heavy Nasdaq composite, 17%.
One of the reasons behind the rout: interest rates. They’re rising at the fastest clip in decades. When this year began, the interest rate on two-year Treasury bonds was 0.75%. Now it’s 4.2%.
So, is it time to bargain shop, or time to panic? Should you sell stocks and buy bonds?
These are two of many questions we attempt to answer in this podcast special.
As usual, host Stacy Johnson is joined by financial journalist Miranda Marquit. Listening in and sometimes contributing is producer Aaron Freeman. Today’s special guest is Jason Vitug, a former bank executive and financial wellness expert.
Remember, even though we sometimes talk about specific investments on this show, don’t take them as recommendations. Before investing in anything or making any money moves, do your research and make your own informed decisions.
You can watch this episode below, or if you’d prefer to listen, you can do that with the player at the top of this article or download the episode wherever you get your podcasts:
What’s going on with the stock market?
The Federal Reserve hiked rates again on Sept. 21, bringing the target federal funds rate to its highest level since 2008. It’s fairly common for the stock market to pull back when the Fed raises rates. The stock market will likely struggle with more hikes expected in the coming months. So, what should you do?
- We did a podcast episode about the horrible stock market a couple of months ago.
- A guest article from The Penny Hoarder explores why the housing market is more important than the stock market to many people.
- Check out our article about surviving a volatile stock market.
- We took a look at the roller coaster ride that is the stock market in a podcast episode last year.
- Don’t forget to check out our episode about the best money moves when interest rates are on the rise.
How to invest when the stock market is down
We talk about staying the course and sticking with your plan. However, if you’re concerned, there are other choices.
- Start by slaying your fear of the stock market to make better choices.
- Check out our podcast episode on 20 ways to invest without using the stock market.
- Hear Stacy’s story of how he used the stock market to turn $1,500 into $1 million.
- Rather than relying on stocks, consider Series I government bonds, which are doing really well right now. Our podcast episode on I bonds can help you decide if it’s the right move for you.
- Is everything down? Check out the podcast episode on how to invest when everything is falling.
- Miranda wrote an article on how to invest in tough times, including a look at dollar-cost averaging and tax loss harvesting.
What are we investing in?
We also talk about what’s on sale, and how you might be able to get a good deal on some solid stocks. We haven’t pulled the trigger yet — it’s a bit early for that — but here are a few we’re interested in:
- Disney (DIS)
- Meta (F)
- Apple (AAPL)
- Alphabet (GOOG)
- Microsoft (MSFT)
We also talk about investing in semiconductor companies and the pharmaceutical sector. We spend some time talking about dividend stocks as well. If you want to learn more about that, check out the podcast episode on dividend investing.
Meet this week’s guest, Jason Vitug
Jason Vitug is an award-winning creator, author, speaker, entrepreneur and producer. He is the founder of the personal finance website phroogal.com, creator of the Road to Financial Wellness and champion of #theSmileLifestyle, a community devoted to experiential and purposeful living.
Jason is the author of the bestselling and New York Times-reviewed book “You Only Live Once: The Roadmap to Financial Wellness and a Purposeful Life.” His TEDx about breaking the money taboo is one of the most-viewed talks on money.
In his previous life, Jason was a nationally recognized credit union executive championing financial wellness. He currently works with Fortune 500 companies, credit unions, community banks and fintech startups on wellness initiatives.
Jason received his bachelor’s at Rutgers University and MBA at Norwich University. He’s an avid traveler, having been in all U.S. states, explored 45 countries and stepped foot on five continents. He is also a certified yoga teacher and breathwork specialist.
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About the hosts
Stacy Johnson founded Money Talks News in 1991. He’s a CPA, and has also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.
Miranda Marquit, MBA, is a financial expert, writer and speaker. She’s been covering personal finance and investing topics for almost 20 years. When not writing and podcasting, she enjoys travel, reading and the outdoors.