WSJ: How to Stand Up to a Bear Market

[daylatedollarshort]

Makes a good case for owning some TIPS, plus other ideas in case of stagflation -

"It helps, whenever markets turn worrisome, to look at historical precedents. How bad could things get? In this case, what U.S. investors should probably fear the most is a replay of the stagflationary slog from 1966 to 1982, when economic growth was spotty, inflation stayed in double digits for years and stocks went utterly nowhere."

"As interest rates have climbed, the so-called real yield on long-term Treasury inflation-protected securities, or TIPS, has risen rapidly to 1% this year. That measure tracks what these securities pay investors in excess of expected inflation. It began 2022 at minus 0.43%. So, points out Mr. White, a $1 million investment in TIPS can now generate $10,000 in annual income, after inflation, essentially risk free."

https://www.wsj.com/articles/how-to-stand-up-to-a-bear-market-11655477101

 

[Earl E Retyre]

I believe the article is behind a paywall

 

[DrRoy]

The book "Your Money and Your Brain" by Jason Zweig helped me get through the Great Recession market.

 

[jebmke]

The book "Your Money and Your Brain" by Jason Zweig helped me get through the Great Recession market.

coincidentally, that was the golden age of Tips. 3% real - I still have them.

 

[Aerides]

I believe the article is behind a paywall

It is, but the OP provided a sufficient snippet for discussion. Of course, to avoid copyright issues, it would not be appropriate to share the entire text.

 

[daylatedollarshort]

Sorry about that. For some reason I'm not getting the paywall. Here are some other tidbits -

"For people still in their prime earning years, this bear market is likely to be as bullish in the long run as it is painful in the short run. For older investors, the decline is potentially devastating. With the Federal Reserve raising interest rates by 0.75 percentage point this week and inflation raging at nearly 9%, U.S. stocks have fallen 22% this year; bonds are down 11%. Recovery could take more time than some older investors have.

"Investors in or near retirement should think of money as “stored energy allowing you to do what you want with the rest of your life,” says financial planner Allan Roth of Wealth Logic LLC in Colorado Springs, Colo. “You want to protect yourself from the possibility of running out of money.”

Zweig's suggestions - retire slowly by working part-time, delay Social Security to age 70, keep investing regularly, spend less and the previously mentioned TIPS. (Most of the rest of the ideas were kind of obvious and ones we discuss here regularly.)

 

[Chuckanut]

I believe the article is behind a paywall

That's why I have a library card. It's amazing how many publications are available in electronic form for free with that card.

 

[TheWizard]

That's why I have a library card. It's amazing how many publications are available in electronic form for free with that card.

I have a library card also.
How does that allow me to bypass paywalls on my smartphone?

 

[MichaelB]

I have a library card also.
How does that allow me to bypass paywalls on my smartphone?

Many libraries have a digital section with access to newspapers and magazines, which you can access by establishing an online account with your card.