Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Economic uncertainty is the new norm, but financial insecurity doesn’t have to be

Christopher H. Loo, MD, PhD
Finance
October 1, 2022
33 Shares
Share
Tweet
Share

I’ve lived through multiple economic downturns since 1999.

Bear markets and recessions can be scary.

The uncertainty and fear can be exhausting.

Currently we are in the midst of battling fears of record inflation, gas prices, an ongoing recession, interest rate instability, supply chain disruptions, insecurity in food, energy, and housing, along with surging debt and currency crises.

This is all happening against the backdrop of war, climate crisis, and a world recovering from COVID with no end in sight.

As of this writing, the NASDAQ is down 27 percent, having recovered 7 percent from its summer lows.

Many of the FAANG stocks are massively down from their 52-week highs.

Bitcoin hit a low of $18,661 earlier this month, and Ethereum is down from the all-time high of $4,800 last year.

The question is: “When will we have more economic clarity, when will we have an economic rebound, and when will it be safe to invest in risk-on assets again?”

Bear markets are defined as downturns of 20 percent or more, each lasting on average 388 days, with 33 days (2020) being the shortest, and 929 days (2000) being the longest.

One of the main reasons why we have experienced so much economic instability over the last two decades is due to the shift away from an industrial (labor) economy towards an economy based on information and value (capital).

You can see countless examples today where the infrastructure, paradigms, and institutions born out of the Industrial Age no longer serve us.

At the core of the Information Age lies the Internet, one of the greatest inventions of the 21st century.

The Internet has collectively unlocked more freedom and opportunity for billions of individuals across the world, and the blockchain will accelerate this process of value transfer at greater magnitudes of scale and velocities in the coming decades.

As a result of these global tectonic shifts, economic insecurity is now the new norm. These effects were particularly magnified during COVID and its aftermath.

While we should anticipate economic uncertainty, the decision to be financially secure is a choice.

We need to approach our financial health with the same seriousness as we have with the other aspects of our professional and personal lives by developing adequate financial literacy and sound investing habits.

Implementing basic investing strategies during bear markets can be some of the greatest opportunities to create generational wealth.

Prominent historical examples occurred during the Panic of 1907 when JP Morgan acquired many distressed assets, or Joseph Kennedy amassing a fortune valued at $180 million ($3.56 billion equivalent today) after the Great Depression of 1929.

Warren Buffett said, “to be fearful when others are greedy, and to be greedy when others are fearful.”

Many of the greatest companies of today came out of the 2008 recession, and expect to see many more game-changing companies born out of COVID in the next few years, many in technology.

Growing up, one of my mentors gave me some of the best advice: “Never let a crisis go to waste.”

I took this to heart and have applied this advice beginning in 2001, after the housing crash in 2008, during the 2020 pandemic, and now in 2022 by staying focused, saving, investing, learning, building, and continually moving forwards.

We can’t predict the future, but we can better prepare for uncertainty by choosing to prioritize our finances.

Christopher H. Loo is a retired physician and founder, Financial Freedom for Physicians.

Image credit: Shutterstock.com

Prev

My postpartum blood pressure spike [PODCAST]

September 30, 2022 Kevin 0
…
Next

Is Elon Musk right about the future of medicine?

October 1, 2022 Kevin 4
…

Tagged as: Practice Management

Post navigation

< Previous Post
My postpartum blood pressure spike [PODCAST]
Next Post >
Is Elon Musk right about the future of medicine?

More by Christopher H. Loo, MD, PhD

  • 2023’s banking failures: a wake-up call for an unstable financial system and potential solutions

    Christopher H. Loo, MD, PhD
  • The most valuable health care companies of tomorrow will be technology companies

    Christopher H. Loo, MD, PhD
  • The recent closing of Amazon Care shows the magnitude of the challenge in changing health care

    Christopher H. Loo, MD, PhD

Related Posts

  • Are behavioral economic interventions the key to health system improvement?

    Peter Ubel, MD
  • The financial barriers of applying to medical school

    Shin Mei Chan and Jamieson O’Marr
  • The economic argument for saving lives

    Yenting Chen, MD
  • Communicating honestly with patients about uncertainty

    Kunal Shetty
  • In the face of uncertainty, choose hope over fear

    Shreya Kumar
  • The impact of economic inequality on the incidence of mass shootings

    Niran S. Al-Agba, MD

More in Finance

  • 1 in 5 doctors will become disabled. Are you prepared?

    Amarish Dave, DO
  • The pros and cons of whole life insurance for high-income earners

    Shane Tenny, CFP
  • Applying the differential diagnosis method to investing

    Amarish Dave, DO
  • Unlocking your full earning potential: a physician’s journey to a $70,000 salary boost

    Contract Diagnostics
  • For newer doctors, avoid lifestyle inflation

    Amarish Dave, DO
  • Want more investment control? A self-directed brokerage account may be right for you.

    Amarish Dave, DO
  • Most Popular

  • Past Week

    • I’m a doctor, and I almost died during childbirth

      Bayo Curry-Winchell, MD | Physician
    • Inside the grueling life of a surgery intern

      Randall S. Fong, MD | Physician
    • Reigniting after burnout: 3 physician stories

      Kim Downey, PT | Physician
    • Motorcycle helmet laws: Balancing freedom and financial impact

      Stephen Cohn, MD | Conditions
    • Contemporary weight loss: Unveiling the quest for elusive elixir

      Osmund Agbo, MD | Conditions
    • How compassionate leadership saved this physician [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • Medical gaslighting: a growing challenge in today’s medical landscape

      Tami Burdick | Conditions
    • Balancing opioid medication in chronic pain

      L. Joseph Parker, MD | Conditions
    • I want to be a doctor who can provide care for women: What states must I rule out for my medical education?

      Nandini Erodula | Education
    • Navigating the broken medical system: challenges faced by foreign medical graduates

      Anonymous | Physician
    • Mourning the silent epidemic: the physician suicide crisis and suggestions for change

      Amna Shabbir, MD | Physician
    • The essence of medicine: genuine connections in practice

      Jennifer Tillman, MD | Physician
  • Recent Posts

    • Contemporary weight loss: Unveiling the quest for elusive elixir

      Osmund Agbo, MD | Conditions
    • Balancing efficiency and compassion [PODCAST]

      The Podcast by KevinMD | Podcast
    • Reigniting after burnout: 3 physician stories

      Kim Downey, PT | Physician
    • Why patients write: stress relief, self-care, and sharing experiences

      R. Lynn Barnett | Conditions
    • Inside the grueling life of a surgery intern

      Randall S. Fong, MD | Physician
    • Misinformed claims and the offensiveness of discrediting COVID-19 vaccine development

      Angel Garcia Otano, MD | Conditions

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

Leave a Comment

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

CME Spotlights

From MedPage Today

Latest News

  • Did Gabapentin Improve Post-COVID Olfaction?
  • Fentanyl Death Trends; Food Additives and Heart Disease
  • What If the Doctor Is Out?
  • Reduced Mortality Seen in Cancer Survivors Who Meet Exercise Guidelines
  • CDC Advisors Endorse Maternal RSV Vax to Protect Newborns

Meeting Coverage

  • Loneliness Needs to Be Treated Like Any Other Health Condition, Researcher Suggests
  • Stopping Medical Misinformation Requires Early Detection
  • AI Has an Image Problem in Healthcare, Expert Says
  • Want Better Health Outcomes? Check Out What Other Countries Do
  • ERS Roundup: Cell Transplant Boosts Lung Function in COPD Patients
  • Most Popular

  • Past Week

    • I’m a doctor, and I almost died during childbirth

      Bayo Curry-Winchell, MD | Physician
    • Inside the grueling life of a surgery intern

      Randall S. Fong, MD | Physician
    • Reigniting after burnout: 3 physician stories

      Kim Downey, PT | Physician
    • Motorcycle helmet laws: Balancing freedom and financial impact

      Stephen Cohn, MD | Conditions
    • Contemporary weight loss: Unveiling the quest for elusive elixir

      Osmund Agbo, MD | Conditions
    • How compassionate leadership saved this physician [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • Medical gaslighting: a growing challenge in today’s medical landscape

      Tami Burdick | Conditions
    • Balancing opioid medication in chronic pain

      L. Joseph Parker, MD | Conditions
    • I want to be a doctor who can provide care for women: What states must I rule out for my medical education?

      Nandini Erodula | Education
    • Navigating the broken medical system: challenges faced by foreign medical graduates

      Anonymous | Physician
    • Mourning the silent epidemic: the physician suicide crisis and suggestions for change

      Amna Shabbir, MD | Physician
    • The essence of medicine: genuine connections in practice

      Jennifer Tillman, MD | Physician
  • Recent Posts

    • Contemporary weight loss: Unveiling the quest for elusive elixir

      Osmund Agbo, MD | Conditions
    • Balancing efficiency and compassion [PODCAST]

      The Podcast by KevinMD | Podcast
    • Reigniting after burnout: 3 physician stories

      Kim Downey, PT | Physician
    • Why patients write: stress relief, self-care, and sharing experiences

      R. Lynn Barnett | Conditions
    • Inside the grueling life of a surgery intern

      Randall S. Fong, MD | Physician
    • Misinformed claims and the offensiveness of discrediting COVID-19 vaccine development

      Angel Garcia Otano, MD | Conditions

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Leave a Comment

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...