Wealth and Wisdom: Week of March 17, 2025
- Mike Brown
- Mar 17
- 4 min read
When I wrote this – late last week – the Nasdaq was already in correction territory, while the Dow and S&P 500 sat perched on the precipice. A correction, you will recall, is when stock prices fall 10% or more from their most recent peak levels. Historically, corrections have come around every couple of years since 1950 and lasted about 10 weeks on average.
Bear markets, of course, are a bigger and scarier deal. That’s when stocks fall 20% or more from their highs. Since 1950, the S&P has seen 11 bear markets lasting on average just over one year, with an average decline of nearly 35%. No one can say whether the squall we’re going through now will turn into a hurricane, or simply blow itself out whenever things calm down a bit in Washington.
History is good for investors to know, if for no other reason than to avoid being surprised when market pullbacks inevitably happen. The more you recognize and accept that corrections and bear markets happen fairly often – and that they have always been temporary – the less likely you’ll make bad decisions with your portfolio by trying to avoid them.
First Trust Economics released this report just as the S&P 500 was beginning its recent pullback – and its message isn’t out-of-date yet. (Reading time: 3 minutes)
The founder of the largest hedge fund in the world has been consistently predicting economic doom for more than a decade. Thankfully, he’s been consistently wrong. (Reading time: 4 minutes)
Americans borrowed $74 billion last year to pay for health care – and that includes people with health insurance. (Reading time: 2 minutes)
Health savings accounts offer a tax-advantaged way to pay for health-related expenses – now and after you retire. (Reading time: 2 minutes)
Making any of these eight mistakes can jeopardize your financial security in retirement. (Reading time: 5 minutes)
We’ve long been taught that wealth compounds faster when you don’t pay taxes as you go – but after-tax accounts offer special advantages in retirement. (Reading time: 4 minutes)
The 100-minus-your-age rule means 60-year-olds should only have 40% of their portfolios in stocks. Don’t fall for this short-sighted strategy. (Reading time: 6 minutes)
There’s more to this decision than weather and scenery. It’s time to do some homework. (Reading time: 3 minutes)
If you got a big, nasty surprise from your tax return this year, follow this 9-step process to minimize the damage. (Reading time: 8 minutes)
Pro athletes get taxed when they play in other states, and some countries tax cattle owners when their cows break wind. (Reading time: 5 minutes)
Words to the Wise
“Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
– Ronald Reagan
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