Volatility and Vision: Understanding Market Moves and the Path to Financial, Time, and Purpose Freedom – 04/12/2025
Also available on iTunes
This episode of “More for Your Money” featured guest host Sheena Hanson from Uncommon Cents Investing. The show began with a review of a “very, very interesting” week in the market characterized by conflicting signals.
Market Review
•The Dow was up 4.95%, the S&P 500 up 5.7%, and the NASDAQ up 7.29% for the week, while the Russell 2000 increased by 1.82%.
•Year-to-date figures showed declines: Dow down 5.48%, S&P down 8.89%, NASDAQ down 13.39%, and Russell 2000 down 16.59%.
•The S&P 500 was still in correction territory (down 10% from its previous peak) but not yet in a bear market (down 20%).
•Despite the S&P 500’s significant gain, the advanced decline ratio was nearly flat, indicating gains were not broad-based.
•There was an unusual occurrence of both interest rates and the stock market increasing during the week. The 10-year bond yield increased by 49 basis points (12%), and the 2-year yield increased by 9%. This is typically inverse to stock market movements.
•The PE multiple of the S&P 500 was 25.5, down from a peak of 30 but not historically cheap.
•The market’s movement could be attributed to an oversold condition leading to a bounce.
Discussion on Freedom
•A central topic was an article in Uncommon Cents Investing’s newsletter about a “ski bum”.
•The article discussed the three freedoms of life: financial freedom, time freedom, and freedom of purpose. These align with George Kinder’s definition in financial life planning.
•The “ski bum” initially prioritized time freedom but realized its limitations without financial freedom and later pursued a career to achieve a better balance and purpose.
•The hosts discussed the order of these freedoms, suggesting that financial freedom often precedes time freedom and then the pursuit of purpose. Financial freedom means having enough resources for choices without stress.
•Research suggests happiness doesn’t significantly increase beyond an income of around $70,000-$80,000 per year. Many find increased quality of life with reduced income but more time freedom and purpose.
Uncommon Cents Investing:
•Sheena emphasized UCI’s focus on providing education and keeping clients informed through their monthly newsletter, which includes market insights, videos, and articles. Non-clients can request to be added to the list.
•UCI offers a free introductory 15-minute conversation for those interested in their services. Most callers inquire about becoming clients and often have a specific financial concern.
•Uncommon Cents Investing does not sell insurance products but frequently reviews clients’ existing policies to help them understand their coverage.
•John Berkley views market volatility as an opportunity and stresses the importance of having a strategy.
•The hosts emphasized focusing on what individuals can control rather than solely on the market.
•They advocate for building portfolios based on a strategy rather than trying to predict market movements.