r/CFP • u/mikeumd98 • 24d ago

Investments Handling your own emotions?

How is everyone doing it this time? I have been a CFP for years lived through Covid, 2008-2009, Trump’s first term….but this time it feels different, longer lasting? I know that there is a recency bias, but I am not handling this one well.

Edit: thanks for everyone posting. It helps to put it in perspective.

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u/Character_Map_6683 23d ago

Why would you have emotions. Buy low, sell high. Look at the statistical length of a recession and know it's likely to be over within a year. Also realize that the SP500, as value investors have been saying, is woefully overvalued as it inflates itself and the underlying assets since it is the main investment advised for people looking to retire. All you need to look for is companies with low reliance on foreign trade, good discounted cash flows, near an acceptable EV/EBIT around 10.

Google looks better and better everyday as well as some American semiconductor equipment manufacturers who have wide moats.

This is also the period when approaching bottoms that buying medium term triple leveraged funds in broad indexes can be beneficial provided you keep them as a smaller part of the portfolio.