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The future is never clear, but it can become all the more frustrating as an investor to understand where we might go when many things in the economy are pointing in opposite directions.READ THE ARTICLE
Looking back: To better understand where we are, it’s important to know how we made it here in the first place. In spring 2021, we watched inflation begin to surge, and in hopes of bringing it down, the Fed raised interest rates four times (so far), which continued the domino effect toward a dip in consumer confidence, not to mention, the markets. Then, major retail companies experienced slow revenue growth, preparing themselves for an extended period of slowdown.
Looking forward: However, we began to see some signals of a turnaround recently. Stocks started spiking back up in June and second-quarter reports from companies such as Apple and travel industry leaders show record-high revenue. In that light, the questions many now wonder are: Has inflation peaked? Are we going into a recession? Will the Fed pull off a soft landing? And, what has the stock market priced in? While the media attempts to answer these on the daily, no one knows for sure.
Keep in mind: When economic waters are muddied, the best course of action is to stick with the long-term investment strategy that brings you the financial peace of mind you need. Your ability to predict the future is not a pre-requisite for being a successful investor.