How to Stay UP in a DOWN Market

ABOUT THIS EPISODE

On today's episode, Financial expert and Amazon best-selling author John Browning talks about how to manage your emotions in the midst of a turbulent market. He aalso shares about his love of Willie the Pooh and how this relates to your portfolio. Learn more when you Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert and number one Amazon best selling author, John Browning Jones the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John Browning. John Browning, how are you doing today? I'm doing fantastic. I am doing unbelievable. Who? I love that word. Know one other guy who uses that word. Speaking of unbelievable, there are some books that we read to our kids. You...

...may have read them, two that have been around an unbelievably long time. So you know some of those books are like Dr Seuss, sorry Bernstein bears, but really long. Probably longer than those are the whole Winnie the Pooh thing. Jury Witni the Pooh I love with neither pool. We need the POO is a big thing when I was growing up and it was a big thing when my first child, so my daughter, who's now twenty seven years old and has our own. And then we have a R insign that we can talk about whinny of the tools, although the little new he doesn't quite get it yet, but he will, he will, he will. Yeah, love the whole all the characters, and so I we want to talk about today is, I'm timely, the state, how to stay up in a down market and winning. The Pooh comes in, because obviously you have up, being tigger, right, he's always up in hyper that's kind of me. And then fun, Fun, Fun, Fun, fun, right, tg have it. And then you've got down, which would probably e...

...or road older, Oh bad, yeah, exactly. And then you have people financially who are like me, which would be kind of probably Pooh bear, who's just kind of a little clue leas and I'm just trying to figure things out. So help us out, John, because the market goes up, the market comes down, people get skittish, they get scared, their depressed. It doesn't have to be that way. You can find a way emotionally, mentally, to stay up in and down market. Let's talk about that. You know that it's a great time to talk about it, because it has been. I mean people talk about it as if it's only been in two thousand and twenty two where the markets been down. So there's a couple things there. One, it's actually been if you really look at the overall market and with many securities that are out there, we've been down for pretty close to a year now. Round April of two thousand and twenty one,...

...it was pretty flat down and then down and down, down until now, and now we're seeing even heavier selling in the markets and there's you know here I'm going to be ere, and things are horrible. It's been. I mean you can't find a place to hide. If you were invested in bonds, you are down just almost just as much as you were in your equities. If you were invested in equities, you are down, and down hard. If you are invested in gold, because gold supposed to be that, you know, safe haven investment, you're kind of flat me like nothing really happen. You're alow, you're up a little bit of you're in gold and it's just it's kind of amazing. Wind cut is basically when you have an am almost will call it an emergency situation. It's not okay. Everybody to understand that. We have seen markets like this before. We have experience...

...markets like this before and in every case it does reverse. Now that's if history is any guid we can't guarantee that that will happen. But looking at things, I can. I can talk all day about the reasons that I do not think that that is going to happen and in you any way, shape or form, I can talk about if you're fortunate enough to be born here in America, the United States, while we complete lane and we wind and we moan and I do the same thing right with so it's just human nature. This is really one of the best places on the planet to be in terms of our wealth and ability to create wealth and best so I want to encourage everybody with that. But here's the thing is, if you are invested properly for you. So, Michael, right, yeah, if if...

...we have had that conversation, if you were client of mine, we had that conversation right up front and we ask those questions. What if you had a hundredzero dollars and you look a month later and it was worth Seventyzeros. How would you feel? And you told me I would feel really, really bad. Well, would you be able to sleep? But I mean with that bother you enough that you couldn't sleep at night, you'd be worried and it's a little hard to imagine unless you're actually going through it, which is what's happening now. Yeah, and then those emotions become real, a lot more on real. Yeah, I'm really brave until the bear is charging at me. Right, exactly. Yeah. Yeah, so you know and I have the conversations now and I think my risk parameters have changed, and that's when it gets in the scary territory for me as your advisor, because if we haven't defined your a parameters up front, then we haven't planned properly.

Well, and that's good. That and that's part of why people need to reach out to and just have conversations, because that is part of your what we would call your onboarding process with a new client, is understanding all of that so that when turbulence comes, you know, I mean I took a cruise with my life years and years ago. Right, I'm sure the ocean was turbulent, but because the boat is so big, you didn't notice it, but if I were on one of those life boats out there, it would been slashed me all over the place. I felt more comfortable, I could sleep while at night in that boat, in a big ship, because it was okay. That's what John Does. He set you up in the right type of ship that you want to be on, because different people have different tolerances. Right. That's what those conversations are all about. You that you do with your clients right, and and and it takes a it takes someone who understands and has been through a lot of different market cycles to really help you do that. And one of the things that we have observed of...

...the last ten, fifteen years. I hear a lot that this is a new thing, but it's really not, and that is that the that fixed income or those bonds in your portfolio or supposed to are supposed to protect you when the equity part of your portfolio goes down. So that's a traditional, old style way of thinking about things. And what we began to see as rates fell and and you know, got to the point where they were what one and for some, and that kind of thing. Suddenly that correlation got a lot closer to one. So you're fixed income and your equities were declining at the same time, like they have done this year. Yeah, and in addition to that, they weren't providing you much fixed income. Right, they weren't really doing the job that they were designed to do. You know, way back now, he's speaking of the ship. Right, when you're in a ship, if you're familiar with how those work, if you have...

...what they called Ballast, which is weight in the bottom of the ship, its stabilizes that ship a bit. So right now I would say that that takest income portion those bonds would be a little bit like the ballast. Okay, but it does slow you down, so you can't move this fast and you can't maneuver as fast. So those are this the their tradeoffs to everything right, and one of the most important things that I could convey to you is that is not the only option anymore. Fixed Income and equities, those are not the only options. There are very good, affordable ways that you can adjust your portfolio so that you have a bigger ship that doesn't slash around quite as much, and you also, and this is what we talked about a lot about on this past podcast. Is You have have liquid assets,...

...so very short term instruments, which, again ballast, it's going to slow you down, but it's so worth it. Have twelve months, six months, whatever your rest tolerances, of cash available to you for your daily living. means. What's that mean? That means you do not have to sell, you're not forced to sell in a market that's declining. Yep, you got twelve, six, twelve, eighteen months of cash available to manage your cash flow, which, especially when people are in retirement, they tend to forget a little bit about managing cash. And cash flow is not the same as how much your portfolio is growing. Your explaining right, and you can sell a security and generate cash, or you can have securities in your portfolio that automatically generate cash, and they don't have to be traditional bonds. That's...

...those are just some of the things I wanted to let people know. There are alternatives out there for you to manage your emotions and manager cash flow that aren't necessarily what you may have heard about when you first started investing. If you're saying my Ange Groom Right, and and that's really, really important because so many times when people I've been around, I'm sure I'm guilty. So well, you get into an investment mindset, you start looking at things and initially I just go back. I look backwards to what. What were the vehicles? Right, this is all I know, traditional Riira or a Rath or a life insurance pot. That's all I know. You Call John and he says, well, yeah, you got those three, but how about these other eight? And I'm like, I don't understand, I don't you know those are available? Yeah, Oh, yeah, no, here's how they all work, because that's what John does all day, every day. And so it's it's having that understand I love your boat analogy and you come back to that ballast and nutstick in sales and there's a whole thing. You...

...probably wrote about some of that in your book somewhere, I don't know. But it's how to how to stay up in a down market. It's by having a balanced portfolio. It's about having a portfolio that supports your life now and in retirement so that when you're interesneting you still have that cash floa coming in, which is so critical. All right, but it's because you got somebody like John in your corner helping you navigate, looking at all these different instruments that are out there, these vehicles, and using the ones that are right for you, because risk tolerance has to play in all of that, right, that's right. And and you look at okay, let's keep the boat analogy, right. There's all kinds of different boats, steel boats, motor boats, big boats, little boats. Yeah, all have different uses. Tug boats. Yeah, all sorts of different uses. And you know what, you wouldn't want to try and do what a tug boat does with...

...the sailboat. That's right. Wouldn't get very far. So what's your purpose? Yeah, why are you doing what you're doing and what are you building for? Still the right kind of vote for you. Absolutely. We should do a whole episode on boats. I like that. How to stay up at a down market talking about Winnie the Pooh and tigger and row and all of those that, all those characters, but that, you know, it's interesting. They all had one thing in common, Christopher Robin, and he was that one place that they could all go to to find peace, safety, help. And I think John, you're probably Christopher Robin, and I want people to reach out to you and find help, find questions and learn about how to build a life and not just a portfolio. And I know they can do that. When they reach out to your Guardian rockwealthcom, they can request a copy of your Amazon bestselling book. You can text the word...

...life to twenty one thou and John will get your you'll receive John's virtual business card and just check them out. Talk to him and see what kind of vehicles he has available to you to help you stay up in a down market. It's been kind of fun. Talking about Winnie the Pooh took me back to my childhood. Like whinnied the pool. I do too, I do too, all right. Well, in the in the Morn, our words then of tigger TTFN. I'll to offer now. All Right, see you next week. Money really is a big part of our lives and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like John Emil, you a free copy of his book build a life, not a portfolio. Go to John's website, Guardian Rock wealthcom, and click the contact to US link and send your...

...request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it's released. Have a terrific day. Nothing in this podcast should be construed as personal investment advice and past performance is no guarantee of future results. Investing is not appropriate for everyone. There is a risk of loss associated with investing in the markets. No representation or implication is being made that using any methodology or system will generate profits or insure freedom from losses. Please remember that investing carries risk. Guardian Rock Wealth LLC and it's affiliates are fiduciary investment advisors. Please consult with US or another experienced, qualified investment advisor before making any investment decisions and or trying to implement any of the strategies and tactics we may discuss in any of our public actions or podcasts.

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