In Money Conscious Episode 10: A Raymond James Expert Shares Why You Don’t Need to Fear Bear Markets, my guest is Mike Gibbs, Director of Equity Strategy and Director of Portfolio & Technical Strategy for Raymond James. I’ve known Mike for many years and there’s no one better to share fact-based analyses of the markets – including where we are and where we’re likely going. He’s a natural storyteller, so he explains it all in a personal and relatable way that will help calm your fears if you are concerned about the bear market and the volatility we’re experiencing. 

We explore in detail many key areas such as:

• How economic factors are different compared to the last economic crisis that started in 2007. For example, corporate balance sheets are strong, and banks are overcapitalized, which means there is less risk in the system today.


• Why the Fed’s rate hikes lead to market and economic contraction – and why we should see inflation start to moderate.


• Why Mike predicts that if we dip into a recession, it will likely be shallow and relatively short. “Market bottoms have a tendency to come very violently and be over in a hurry.”


• Market turnaround timing is tough to predict, and the market will likely go up a lot before news headlines turn positive. 


• Bear market history – e.g., the average decline in and length of a bear market are 33% and 13 months, respectively.  The S&P 500 is now down about 25%. We have already been in this bear market for 8.5 months. 


• Bear markets are stressful, but history shows us that the economy heals, and the market reaches a new high every single time.


• The fact is that stocks rise more than they fall; in bull markets, they go up an average of 152%. 


• Why sectors like green energy, healthcare, cybersecurity and software are booming and will continue to in the future; and


• Bear markets offer strong buying opportunities. 

Guest: 

This episode’s guest is J. Michael (“Mike”) Gibbs. Mike joined Raymond James in 2012 through the acquisition of Morgan Keegan & Co. He currently serves as the Director of Portfolio & Technical Strategy for the firm. He joined Morgan Keegan in 1986 as a financial advisor and became Senior Investment Strategist for the firm in 2003. In 2009, he assumed the role of Director of Equity Strategy. As Investment Strategist, his role is to guide financial advisors on market strategy and stock selection through the use of fundamental and technical analysis. Read his full bio.

Show Notes:

• In every episode of Money Conscious, host Sacha Millstone talks with exciting, knowledgeable guests about what it means to invest our money consciously. The title Money Conscious reflects two priorities we’re passionate about at The Millstone Evans Group: putting your values where your money is, and raising consciousness about money matters in an easy, personal and relatable way. 


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