Part 2: Are you ready for a 30% Market Decline? (Pay Attention to Valuations, Not Headlines) (Ep. 33)
In a climate where volatility is the price of admission to long-term wealth, are you truly prepared—not just emotionally, but structurally—for a significant market downturn?
This week on Red Carpet Retirement, Adam Scott, CFP®, takes us deeper into the mindset and math that drives resilient investment strategies. Building on the theme of being ready for a potential 30% (or even 50%) drawdown, Adam goes beyond emotional readiness and unpacks one of the most misunderstood tools in modern investing: valuation metrics.
🔍 Spoiler alert: If your portfolio doesn’t factor in CAPE ratios, you may be flying blind.
🎧 Adam dives into:
✅ The mental prep investors need when headlines start screaming and prices start falling
✅ Why the CAPE ratio (Cyclically Adjusted P/E) isn’t just academic—it’s your market compass
✅ How historically high P/E ratios should inform—not terrify—your allocation decisions
✅ Building a portfolio that doesn’t just grow—but endures storms and thrives after
✅ Asset classes that offer better value right now, including overlooked international and bond opportunities
Resources:
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