Weekend Reading: Can Your Portfolio Outsmart the Three Fed Bears?
This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
As inflation continues to remain a front-running financial concern of individuals across the U.S., this article takes a look at three outcomes (or Fed bears, told Goldilocks style) that could occur as a result of rising costs:
READ THE ARTICLE📌Papa Fed bear: Asset prices crash, including stock and real estate prices, interest rates soar and a recession ensues
📌Baby Fed bear: A pull-back of any uneasiness and complaints from elected officials via a timid Fed, where inflation isn’t tamed and stagflation, as well as wage and price controls, result
📌Mama Fed bear: Tightening to deflate the inflation bubble, implementing a two percent inflation limit, maintaining economic growth and navigating all course of action based on data
My thoughts: Unfortunately, we do not have a crystal ball to tell us if any of the Fed bears will in fact show up in 2022. Attempting to predict the Fed's actions over the next 12 months will be no more fruitful for you than predicting what the stock market will do. In the long haul, however, you will benefit from staying the course and putting your energy into what is most meaningful in life.