Fri.May 13, 2022

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The 2022 Sell-Off: Making Sense of the Markets

Walkner Condon Financial Advisors

The market weakness in 2022 has continued to accelerate, driving equity prices lower. While it may feel like a pretty extreme selloff, the S&P 500 selling off 15% is fairly normal, occurring every 2.5 years. Even if we reach a “bear market”, defined as a 20% or more decline, this will occur on average every 4 years, so we are experiencing a phenomenon that is relatively frequent.

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The Better Letter: So What?!

The Better Letter

Daniel Kahneman is the world’s leading authority on human error. The Kahneman TL;DR? There’s a ton of it and it’s universal. It is one thing to recognize our foibles, of course, and quite another to do something about them, as Kahneman readily concedes. Research evidence, for example, suggests that being smarter, more aware, and more educated doesn’t seem to help us deal with our cognitive difficulties more effectively.

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