fbpx Skip to content

Weekly Market Recap – 11/29

Week in Review – November 29, 2021

60 Second Market Review

What happened?

  • Stocks closed sharply lower on Friday for the biggest drop of 2021. How bad was it? 

Things to be aware of…

  • December is coming. We’re going to talk about business ownership, starting with our Side Gig Guide this week – getting started. 

  • Want to double your wealth? Forbes says those with a plan have double the wealth than those without one. Get your financial plan today.

The Details

What happened? 

Stocks closed sharply lower on Friday for the biggest drop of 2021. How bad was it? 

 

 

Source: Ycharts

Actionable Items for You:

  • Stocks dropped sharply on Friday, and there’s one thing you should do: probably, nothing. 

  • While this may not be the end of a pullback, 90% of active managers underperform passive index funds. If you can’t beat them, join them. 

 

If you’ve been sleeping all weekend, you probably aren’t aware that there was another Covid-19 variant discovered in South Africa last week, one of major concern. And while we’re not going to go into specifics on what it is here (nor, are we equipped to), we do want to take a look at how it can potentially affect your finances. 

 

First of all, the numbers. Markets dropped sharply on Friday, with the Dow Jones Industrial Average having its worst day of 2021:

 

Source: CNBC

 

While that probably hurt your unrealized gains for the year, it’s important to know that it probably didn’t affect you all that much. If you have a portfolio that is taking on 75% of the risk of the market, and 25% of your money is in cash or fixed income, you probably felt about 75% of the downside. In addition, the market is now trading at the same level it was at in… October. 

 

Freeman Capital clients know what to do here to take advantage. And it’s not to use leverage, find some crazy get rich quick scheme, or sell out of all your stocks to protect yourself from losing any money. No, the right answer is… do nothing. 

 

We’re not saying this market selloff is done – it could certainly continue after the market has rallied impressively this year in the face of shutdowns happening across the globe with a surge in coronavirus rates, still troubling supply chain issues, and now this new variant of concern. But what we do know is that in 10, 20, and 30 years from now, not many people will be talking about November 26, 2021, as the day to go to cash and never buy stocks again. 

 

So doing nothing, not trying to time the market, will be the best strategy long term. We’re talking about passive investing, something that has outperformed expensive money managers over 90% of the time over a 20-year period according to the S&P Indices Versus Active (SPIVA) report from S&P Dow Jones Indices. That’s just math. All you have to do is be patient, invest properly, and stay invested.

 

Want to know how we set up our portfolios? Feel free to set up a time to chat.

Things to be aware of…

 

December is coming. We’re going to talk about business ownership, starting with our Side Gig Guide this week – getting started. 

 

Actionable Items for You:

  • Millions of people are quitting their jobs and going full-time on that side gig – we’re going to talk about business ownership in December.

  • Getting started you should run through a business plan – something to get your ideas on paper and really get the momentum started. 

 

During the pandemic, millions of people started a side gig to make some extra cash, with some having left their full-time jobs all together. We’re in what’s now known as The Great Resignation – a record 4 million people quit their jobs in July 2021 alone. And while some went off to start new full-time jobs, a good amount turned their pandemic side gig into a full-time business. 

 

In December we want to talk about business ownership. This could be a side gig to supplement your 9-5 salary or starting a full-time business. While learning on the go is one way to go about it, there are some things you need to have in place in order to establish your successful side hustle. 

 

Basics first – start with a business plan. Your plan needs to focus on the key things that will help you build a successful business. Putting your ideas on paper makes your business come to life, and this will help you better determine what you want and don’t want in your business. You might even come up with completely new ideas. 

 

 

Your business plan does not need to be complicated but it should address the following: 

 

Who, How, What 

  • What do we do?

  • How do we do it?

  • Who do we serve?

 

Why

  • Define the customer problem

  • Define the solution you will provide

 Revenue

  • Your pricing and billing strategy

  • Income Streams 

 Marketing

  • Customer reach strategy

  • Referral generation strategy

 

Competition 

  • Top competitors

  • Your competitive strategy 

Metrics

  • Success milestone 1

  • Success milestone 2

 Next in your plan, you should budget for startup costs. A few costs to consider for your preliminary side hustle budget may include:

 

  • Office equipment

  • Technology such as a computer or mobile phone

  • Materials you need to buy

  • Preliminary marketing expenses (such as the cost of website, building software, and registering your URL and online ads if you are buying any)

  • Costs associated with registering for online freelance platforms or marketplaces you might use to find customers

  • Accounting software

 If you’re interested, we have a great excel template for you to ‘borrow’ – hit us up and we’ll shoot you a copy.

 

Do you want some help getting that side gig started? We’re here to help. Schedule an Intro Call Today.

Want to help us? Share this with your friends and family. 

Table of Contents

Let's Talk

To schedule a free consultation, fill out the form below.

Name
Name

You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.