Each week, our clients receive a market commentary from us that’s done by the research team at LPL Financial. If you are reading this but are not a client, you might also be interested enough in your finances that you get some other commentary. Or perhaps you do your own research. Whatever the case you might be thoroughly confused by what the articles are saying….(it changes weekly!).
Although analysts have gone back and forth between recession or not, growth or no growth, it seems pretty clear that the economy is not settled out yet. The most recent commentary from LPL hit the nail on the head “The conundrum is investors are regularly receiving a mix of both good and bad news”. This makes it difficult to understand where we are headed.
At this point, the Fed is still looking to raise rates—and most likely faster and potentially more than expected. This can challenge stock valuations which makes it hard for stocks to see big gains, not impossible, just challenging. However, the Fed needs to challenge this inflation problem and hopefully without a prolonged recession.
Eventually, the economy will settle out but what does that mean for you….
- Stay the course.
Long terms goals don’t change because the economy is going through its cycle. That’s the point of a long-term goal: it factors in the long-term economic cycle.
- Don’t Respond Emotionally
Headlines are generated to grab your attention with emotional catches. Emotions garner shares, comments and likes in the fast paced internet world but have no useful application for investing. Don’t be swayed by the headlines.
- Keep an eye on day-to-day spending
If you haven’t noticed the price of eggs lately, compare it to a year ago. Basic staples have gone up tremendously. Be sure to keep an eye on how your budget looks month to month.
The bottom line is, even the experts aren’t exactly sure how this economy will play out. So, stay informed, call your Financial Advisor as much as you need to and focus on your personal situation while working on your own goals.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.