Hi Friends!

 

It’s officially summer! We hope you enjoyed the summer solstice and the beautiful weather June has brought us thus far.

 

Let’s talk recessions.

 

At this point, we are sure you have heard all the talks about the potential for a recession- we even covered what exactly constitutes a “recession” in last week’s newsletter. It’s a concerning word and can easily spook investors.

 

Fortunately, recessions are not only a natural cycle of the stock market ebb and flow, they are actually quite common. In fact, the United States has technically been in a recession 14% of the time since World War II and nearly 24% of the time since 1929. Today’s bear market may not fit the historic mold of how we’ve seen recessions in a textbook or the media- mass unemployment, understocked food pantries, long lines at the welfare office. But it’s important to remember that the US has shouldered its fair share of bearish economic outlook for over half of a century and has survived to see brighter days.

 

With that in mind… what should you do? Well, many financial savants say to do nothing and ride out the wave. While we appreciate the sentiment of not overreacting, we at Obsidian believe there are some things you can do to prepare for and sustain through a recession. As always, we encourage you to speak with us before you take any action!

 

  1. Don’t Panic: It may seem obvious, but people can have an incredibly emotional relationship with their money. Declining balances are never easy- but it’s important to keep perspective on your long term goals.
  2. Revisit Your Portfolio: With long-term goals in mind, let’s review your portfolio to ensure it is still in line with your plans for the future.
  3. Know Your Risk: Everyone has a different risk tolerance, which should be reassessed on a regular basis. Depending on your current situation, short term needs are typically handled differently than intermediate or long term goals. On the other hand, bear markets present unique opportunities to invest in high value stocks at a discount. Either way… always consult us first.

 

At the end of the day, recessions happen. They are inevitable. History has shown that the market tends to bounce back. Stay patient and know that you have a well-thought-out financial plan that is monitored by your team of professionals here at Obsidian.

 

 

Are you looking for some fun ways to stay in shape? Or maybe looking for some new interesting ways to spend time outside? How about both?

 

  1. CrossFit: No, you do not need to lift 400lbs and do one-handed pullups to enjoy functional fitness at your local box- that’s the industry lingo for a CrossFit gym. In fact, CrossFit was initially designed to help people live independently for longer with highly functional movements that translate to everyday life. Squats, box step-ups, and farmer’s carries sound a lot better outside!
  2. Yoga: If you’re looking to find some more peace in your life- can’t we all- then some meditative movement in nature might be the solution you’re looking for. Imagine taking an hour out of your day to connect your soul to the beauty of nature while also stretching out those tight hamstrings.
  3. Zumba: OK, hear us out. You don’t need to be a great dancer to enjoy an outdoor Zumba class. The group fitness class is highly-scalable (anyone can do it) and has been shown to greatly improve your heart health, cholesterol, and lung capacity.

 

That’s it for us this week. Enjoy the sunshine and we will be back in your inboxes next Friday.

 

 

How We Help

 

We recently had a new client who was looking to transfer her successful chain of furniture stores to her son. As it turns out, the son had no interest in assuming ownership of the family business- completely unbeknownst to his mother. She was left feeling anxious and unsure about the future of her company. Uncovering this dynamic many years in advance, and merging her personal and business planning together, has allowed her to take the necessary actions now to set the stage for a successful future. We are building a step-by-step process that may take years to implement, and we can make sure she is making progress towards her objectives.

If you own a family business and are looking for guidance, give us a call!

 

Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Securities are offered through Triad Advisors, member ​FINRA/SIPC.​ Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.