A TOUCH OF FROST #14 – Coaching Basketball, Why Is the S&P 500 Falling & March Madness
Coaching Basketball
I was a rookie basketball coach this past year for my old junior high school, the Medicine Hat Christian School Warriors. This opportunity first presented itself to me last year around this time, when one of the dads asked if I could come in and help, as the other coach was leaving. I mulled it over and finally in September, I talked with his son and decided I’d give it a go. I was pretty excited to get back into basketball, as I hadn’t done much with it since my senior year of high school. However, here I was, coach of my old junior high team – a coach of 10 boys from grade 7 to 9.
It was a huge learning curve and responsibility, but the season was fun. The growth I saw from day one to day fifty to the season finale was inspiring. The boys grew into great young basketball players and showed immense dedication and improvement. I will say though, it was not linear…no, not at all, in fact. There were highs and lows, and just when we thought we reached a low, a new one would come. However, the highs also got higher and ultimately, we ended our season on a high. It might not have been the highest place we wanted to get to, but together as a group, we were proud of our efforts, bonds, and the growth we experienced.
You may be asking what this has to do with finance. It’s simple and boils down to five main points.
- Fundamentals win games
In basketball, we started day one with refreshing basics and continuing to improve dribbling, passing, and conditioning. Your financial journey shouldn’t be any different. You have to nail the basics like cash flow planning, saving consistently, and avoiding bad debt. Having a cash flow plan in place is really like learning how to pass a ball properly. There are certain motions you have to learn and master in order for it to be effective. Just like my ball team, everyone starts out at a different level. No matter the amount you save, consistency is key because that builds good habits. Finally, avoiding bad debt is like coming into the season not knowing the condition of your players. Once you identify that they may need to do some extra running, zeroing in and practicing it helps change that scenario.
- Progress is NOT linear
As I mentioned above, highs, lows, coasts…you name it, it happens on the court and it happens in finance. You saw it recently in the market. Two months ago, we were at an all-time high in the S&P 500; now, we are down roughly 7%. One year ago, we lost almost 20% in a matter of days, only to be higher in a month. Look at us now, from last year’s tariff shock to now, we are up 16.33% in a year.
Not only in the market, but sometimes, you feel like you are on track, saving, growing, and then there is a bill, a huge one. This could derail you, hurt for a short time, but in a couple months, you might be back on your feet. Or, you had an emergency fund, knowing that something may come up, and use that to recover. All in all, everyone is different and life happens. No matter how great a saver you are or how amazing an investor, there will always be highs and lows. Not to mention, we all start at different ages, amounts of money, life experiences, and willingness to improve.
- Team chemistry matters
I spent a lot of the year making the kids believe in themselves and in each other. A team with talent but no trust or confidence falls apart. When it comes to your finances, your “team” is your spouse (if you have one), your habits, your money mindset, and your environment. As a couple, having common goals will allow your finances to be efficient and grow. It is not a me-versus-you situation, it’s a me-and-you situation. Our future, our goals, our life. One way to help ensure that cohesion is knowing your money mindset. Knowing how you spend, why you save the way you do, and whether you are open or closed when it comes to money helps you be vulnerable and open to the teamwork needed to achieve your goals together.
- You don’t rise to the goals, you fall back to the systems
Winning a championship is great, setting that as a goal is an awesome first step. But realistically, it takes more than just naming a goal to achieve it. You have to fall back onto your systems and strengths to get you to that goal. For instance, it’s like saying, “I want to retire wealthy.” Everyone has thought it, but it means nothing if there is no starch in the soup. What actually gets you there – gets you to being wealthy – is the small things that build up over time. The constant savings, the cash flow plan, the compounding returns you achieve, the unwavering stance during the lows, the insurance policy you get, the estate plan you lay out, donating and giving back to the causes you love, and knowing the values you want to carry throughout your life and generations. Goals inspire; the system delivers.
- Winning isn’t just about the scoreboard numbers
Our season did not end the way we wanted it to. However, in my last speech to the team, I mentioned how honoured and proud I was to see the growth, efforts, and development in the individual players and how I counted that as a win, as cliché as that sounds. But it’s true. Money isn’t always about getting the greatest net worth; sometimes, it is not possible to be the wealthiest person you know. Maybe, your $500,000 allows you to be free, do what you want, and have options and peace of mind. And that is a win. Maybe it’s less, maybe it’s more. Regardless, a higher net worth, though great, doesn’t always mean you win. Freedom, peace of mind, and having options is always a win in my books.
What I’m Seeing and Reading
Why is the S&P 500 Falling? – Matt Cerminaro
- “The only way the S&P 500 can fall as earnings estimates rip higher is if the forward multiple is cratering… All of this is also a reminder that strong earnings don’t always mean a strong stock market.”
Weekly Economics – Eugenio J Aleman, PhD, Chief Economist, Raymond James Financial
- “From a macro perspective, the US economy still enters this period from a position of relative strength. Investment spending remains well supported by the IRA and CHIPS Acts as well as by continued momentum related to AI deployment, which has helped anchor growth and offset potential downside pressures. Financial conditions, while tighter than in prior cycles, have not yet derailed activity. However, the distribution of that resilience remains uneven.”
Up and Adam by Larry Adam Mar 23 2026 – CIO Raymond James Financial
What It Takes: Lessons in the Pursuit of Excellence – Stephen A Schwarzman
- This book was a great summary of how Blackstone came to be and the countless hours of patience and perseverance it took. Not only does it show what it takes for an individual to make a dream a reality, but it also shows how to continue to grow and create a positive work environment. All in all, a very insightful book about the life and growth of a company and a person.
Chip-Ins From the Week – March Madness
It’s the most wonderful time of the year… except it’s not Christmas, it’s March. As of this writing, to one person, it could look like Christmas outside… but that is just southern Alberta for you. March is a great time on the sports calendar. You have the basketball and hockey regular season winding down, you have baseball ramping up, the Masters is just around the corner, and of course, March Madness. Every year, millions of brackets are filled out based on stats, colours, mascots, gut feelings, or coin flips. The best part? No one ever gets it right. The chances of a perfect bracket are about 1 in 9.2 quintillion, 18 zeros. I mean it’s only logical. You have to correctly guess the winner of 32 games just the first two days. After that, there are still 31 games left to guess, with upsets happening in every round. The closest someone’s got? That belongs to Gregg from Ohio, who got the first 49 games correct. As for myself, my bracket sucked this year, as most years, but my printed-off pencil-filled bracket is still perfect… just waiting for the Final Four and the Champion to be crowned while I finish filling in my bracket.
Enjoy the weekend,
Jonny
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