Financial Independence and the Falling Market: A frank conversation

Financial Independence and the Falling Market: A frank conversation. We are open about our Financial Situation. In today’s video, we would like to share how we are feeling and the impact of the falling market on our journey to Financial Independence.

For many new investors ourselves included this is going to be the first time that we’ve had to deal with one of these roller coaster up and down and mostly red markets so today we’re going to talk a lot about how we’re feeling and some of the things we’re doing in order to help deal with the situation so stick around and we’ll have a chat when we get back and

The first question is are we stressed of course yes we are we are very very stressed but as you can see on the environment from your end that might be one of the ways that we’re trying to deal with so on today’s topic as christine mentioned before oh by the way my name is jean i’m christine we are a canadian couple living in toronto canada and today we tried to

Have a different video which is basically sharing with you how we are feeling it’s not about all the apps and sometimes downs but we wanted to be frank and nazir always are about our financial situation today we wanted to discuss with you the stock market and how we are trying to deal with the situation that is going on in the world yeah and as many of you i’m

Sure everybody that’s invested and even if you’re not the current situation with high interest rates and inflation and the war in ukraine all of this is having effect on the global markets and they the effect is they’re going down and they’re going down rapidly um as we record this today friday the 13th lucky friday the 13th it was actually a good day for me in

May 2022 so as a reminder to our future ourselves yeah today was actually we actually felt relief today and we’re still down a lot in our portfolio but it was the first little day that we could actually breathe so just to quickly go over a few of the factors that might be influencing reasons why the stock market’s going down yeah i’m sure that you know all of

Them we just wanted to as we did say before to emphasize what’s going on and what is going to happen in the future just as a reminder that things happen and they do happen for a reason uh as we know every month we share our network updates we share our achievement income it always ups and we are happy but now it’s not the case oh yeah wait for me or for april’s

Net worth yeah exactly if you have not subscribed to our channel yet there is a great opportunity because every month we share our net worth updates and for the reasons there you know the first one is covid we are two years you know into kobe then we still have issues with the supply chain we still have issues with lockdowns and everything so this is one of

The reasons that we identified that the market is down right yeah and the next one is going to be higher inflation that one sort of directly is tied to kovit with all those supply chain issues and the fact that it’s harder to make those goods it’s harder to get what we need in order to eat and sustain ourselves or even for manufacturing that drives prices up and

When prices go up inflation’s going up so things like higher oil costs due to conflicts in ukraine in the war in ukraine all of this leads to higher inflation which leads to higher interest rates in order for governments to try and drive down that inflation which stock markets don’t react well to higher interest rates they tend to sell and sell a lot and that is

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What we are seeing currently from january 2022 to currently yeah i just wanted to clarify something when we say that our portfolio is down it’s the overall push for you right so we have different accounts as you do know but it’s basically the swing trades that we have that we are stuck in we are not gonna sell intro that’s one of the main reasons a part of the

Stress the three kills going down nasdaq is going down so that’s why our portfolio had kind of a little but even overall even the canadian market even those dividend stocks that we are very happy to hold and the dividend stocks that we continue to earn dividends on um the value of them has dropped we’re still okay and we’re not selling so that’s that’s fine yeah

So going back another topic that you know is when you know we are stuck at home companies not all the companies the economy it actually goes down the companies are not making money as they use it too and as a result the market keeps going back down yeah so those lower earnings from those companies are dropping their stock prices and people are selling off so all

Of these things kind of are leading into i’m sure there’s many more we are not economists by any stretch of the imagination but those are what we can see is just your general everyday citizens as to some of the reasons why the market is not on a winning streak right now back at the very beginning we spoke a lot about risk tolerance and determining your risk

Tolerance and being comfortable with the ups and downs of the market and being able to sleep at night we’re still comfortable with where we are risk-wise um but i gotta say i don’t think we were ready for the emotional rollercoaster that it brings with it to watch your investments drop by thirty percent yeah we are being transparent three years it’s down yeah

It’s a lot right when you think about that that’s a lot of money now like one of our awesome subscribers pointed out those are unrealized losses so as long as we don’t sell we haven’t actually lost anything which is good and that’s comforting but it’s still hard to take a look at those numbers day in and day out and wonder how did this happen in such a short

Period of time but we’re sticking with it so yeah and that that’s really important when we talk about the risk tolerance right that’s we know there’s like a questionnaire that you usually go when the banks ask you to complete a financial advisor a financial planner even though we said yes we are really you know risk tolerant we are good we are gonna be able to

Go and live with it yes we are but it’s hard so take a look in your portfolio take a look at your risk profile and see what it really fits to you know yeah now’s a really good time to reevaluate that not to say that you need to sell or get out of any positions that you might be in but maybe reevaluate your risk tolerance so when the market does turn around and

We are quite confident that it will we don’t know when but we think it will yeah um at that point you can maybe shuffle around some of your investments if you’re in the wrong risk tolerance category and also depends on how far you are you know in your journey to financial independence in our case we are going to return in 2024 we are basically two years away from

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Retirement or stopped working and becoming financially independent our situation might be different than yours because if you’re starting now this is a great opportunity and the horizon that we have in 10 15 20 years you’ll be good yeah you can get in at a low point right so it’s all just different perspectives and ours is slightly shifted when we realize how

Close we are to our fire date and now we’re thinking hmm maybe we should shift some of our investments slightly in the future sure but one of the things that i think that we did well was chosen given as you know in a way of passive income because if you are thinking about etfs if you only have etfs in your portfolio and if you are depending on those etfs should

Live as the price of the etfs they go down the amount that in each withdraw it’s also going to increase right exactly the opposite in our case not that much with the achievements but i think it’s yeah i think a good mix of those two is important at least in our situation we do have etfs that we are watching right now lose their value significantly um but at the

Same point we’re still getting all those dividends and yeah there’s always the risk that we could receive some dividend cuts but honestly with the the companies that we’re holding we’re not worried algonquin just increased their dividend yesterday yeah by six percent so all said and done we’re happy with our investments we are slightly stressed out um and i think

That this is just a learning experience for us on how to deal with some of our stress and how we’re dealing with it is here is here it’s in this park we think about the weather is also better which allows us to go out and to walk so we are trying to exercise more trying to be away from our home and try to do something it’s actually to celebrate you know like these

Small victories that we have don’t be focused only on like the downs yeah the negative stuff yeah we don’t think that it does help so that’s what we are trying to do come here and go for a walk and say hi to people and you know seeing people smiling which is really you know a relief yeah and part of that all too is just taking control of the things that we are

Able to change and deal with right the markets are out of our control we have no say if we did gosh be green all day we don’t have any say on how it’s going to go so we just have to kind of hold on for the ride and see where we end up but the things that we can control our health and our mental well-being so getting out and exercising doing that kind of stuff is

Certainly becoming more of a priority especially over the past few weeks for us as well as looking after ourselves eating a bit different getting enough sleep stuff that we all know but we’ve neglected over the past couple of years to be honest one of the things that i owe that i’m trying to avoid now i do have an app which is investment.com which basically tracks

The futures for the next day so if i see green i’m gonna sleep well if i see red not that much so i’m trying to avoid those apps because they have an effect on how we speak right so you worry without giving yourself the credit that there is going to be ups and downs along the way but yeah we just weren’t expecting the down down down down yeah but what am you were

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You expecting that as well yeah and how are all of you doing we know that we’re not the only ones going through this we had lots of comments from some people that are suffering through a lot of the same downturns that we are we just wanted to check in let you guys know how we’re doing but we wanted more importantly to check in and make sure you guys are okay let

You know that everybody’s going through this and it kind of sucks hey if you’ve got extra capital now is the time to also invest i think unfortunately we’re kind of in a holding pattern right now for some of our investments but that could change too who knows maybe maybe we win the lottery we need to buy a ticket we don’t own a ticket we are not going the lord if

You do share with us right yeah but that’s basically what it is i mean we are trying to to live this is as we always say a learning opportunity and it’s a really good one that we are experiencing now we hope that you’re well and as we always say we are one uh email we are one comment away if you don’t have somebody to talk to if you want to go and connect with us

Use the comments below or send us an email or send us a message because we are not alone we are on this together even though we talk about our journey it’s not only about us it’s also about you and honestly that kind of lifts our spirits and hopefully it lifts yours as well when we get to connect with you guys this is one way of i guess it’s connecting but it’s

Hard because we’re just sitting here talking right but we really love the comments and especially love like the emails and the instagram messages and stuff like that so feel free reach out and now that the weather is better hopefully we can start connecting with some of all of our lovely people here in the city and in ontario and if we ever get to travel across

The country let’s try and meet up yeah i would love to yeah so that’s the video for this week a little bit different and i think next week’s going to be that big net worth video so stick around and we’ll talk about that next week i can tell you right away sporadic is going to go down but how much i honestly think it’s going to be below the 900 oh i can guarantee

You yeah yeah yeah it is what it is have a good week guys take care thanks again stay safe bye bye good all right now picture time yeah is that a stress look you’re laughing and i’m stressed does that work out but i guess that it’s not only us globally at the body in general but it’s a little bit stressed and what should i say i don’t know if that’s going to

Pick up on your voice is it or more it’s a microphone yeah i know normally you talk way louder yeah are you afraid of the great outdoors ah maybe that’s it oh yeah hi

Transcribed from video
Financial Independence and the Falling Market: A frank conversation By FIRE We Go!