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Ep 11 - Riding the Waves: Understanding Market Volatility and Recovery
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Are you letting fear drive your investment decisions? Or are you prepared to navigate market volatility with confidence and clarity? In this episode of Metcalf Money Moment, hosts Jeb, Ethan, and Eric discuss the emotional rollercoaster of the stock market, from historical bear markets to innovative diversification investment strategies. You'll hear insights from timeless charts like the First Trust Bull and Bear Markets chart, the J.P. Morgan Guide to the Markets, and the colorful Quilt Chart that illustrates why no single asset class wins annually. Whether you're worried about downturns or looking to turn volatility into opportunity, this conversation will help you stay grounded, informed, and focused on your long-term financial goals.
IN THIS EPISODE:
- (00:00) Opening and introduction
- (00:53) Discussing stock market volatility and investment strategies
- (03:17) Ethan refers to a First Trust Chart from 1942, which charts the Bull and Bear Markets
- (07:14) Eric refers to the Quilt Chart and discusses asset allocation
- (11:32) Jeb discusses the Crisis and Events Chart and the J.P. Morgan Guides to Markets Chart
KEY TAKEAWAYS:
- Market volatility is normal and recurring. Market downturns—5 %, 10%, or even 20% declines—are typical. Ethan noted that a 5% drop happens about three times a year, while a 20% decline occurs roughly every five and a half years. Despite their frequency, these downturns are typically followed by recoveries, often leading to new market highs. Consider this information when making investment strategies.
- Bear markets are opportunities, not just risks. Rather than fearing market declines, the hosts suggest viewing them as opportunities to invest at a discount. Jeb and Ethan both stressed the importance of staying invested during downturns to avoid missing out on the early stages of recovery, which often carry significant gains.
- Diversification and asset allocation help smooth the ride. Since no single asset class consistently outperforms, spreading investments across stocks, bonds, and other assets helps manage risk and capture returns over time.
RESOURCES:
Ep. 8 - Long Term Wealth Building: How to Stay Resilient in Uncertain Times
DISCLAIMER:
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
ABOUT THE HOSTS:
Jeb Graham:
Jeb is the CEO and Managing Partner at Metcalf Partners Wealth Management. Before founding Metcalf Partners, he was a financial advisor in Overland Park, Kansas. Active in the Kansas City community, Jeb serves on the Kansas City Chapter Board of the Entrepreneur Organization (EO). He holds a finance degree from Kansas State University and a CFP® designation, and he received additional executive education in retirement planning from Wharton.
Ethan Hutcheson:
Ethan is a Partner and Financial Planner at Metcalf Partners. He is passionate about helping people prepare, plan, and execute. With a career in Financial Services, his expertise spans Financial Planning, Tax, and Investment Management. Outside of work, Ethan enjoys hunting, cycling, and outdoor activities with his wife, Shanna, and their sons, Rhett and Levi.
Eric Wymore:
Eric is a Partner and Wealth Manager at Metcalf Partners Wealth Management. His career has been dedicated to wealth management. As an Accredited Investment Fiduciary, he prioritizes acting in clients’ best interests. Originally from southeast Iowa, Eric has lived in Kansas City for 20 years with his wife, Becky, and their sons, Gabe and Nolan. He holds a degree in finance from Iowa State University.
Market Volatility, Investment Strategies, Bear Markets, Bull Markets, Asset Allocation, Diversification, Market Downturns, Recovery Gains, Risk Management, Financial Goals, Long-Term Investing, Stock Market Trends, First Trust Chart, J.P. Morgan Guide, Quilt Chart, Market Cycles, Small Cap Stocks, International Equities, Fixed Income, Historical Data
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