We're living in an age of information overwhelm.
Everywhere we look we're surrounded by social media and headlines designed to grab our attention and create a strong emotional response.
And it works.
What do we do about it? How do we avoid letting negative news bring us down?
I made a short video sharing 3 simple tricks.
Some perspective on the grim situation in Ukraine and what could happen in markets.
(Need a break from it? Scroll down to the P.S.)
The invasion of Ukraine is a serious and scary escalation in tensions between Russia, Europe, and the United States.
Before we dive in to what it could mean, let's take a moment to think about the many folks who are suffering and dying as well as the ordinary Russians who will suffer from sanctions, instability, and economic damage. I hope and pray that diplomacy can end this crisis for all our sakes.
Let's talk about some possible implications for markets and our economy.
Given Ukraine's critical pipelines and Western sanctions on Russia, the crisis may lead to higher energy prices, which will trickle down to higher pump and heating fuel costs.(1) Sustained price increases could hamper the Federal Reserve's effort to control inflation, so we're keeping an eye on that as well.
What could happen in markets? Higher than average volatility, as we've already experienced, is very likely. Another correction (or even a bear market) is definitely possible.
What does history teach us about market reactions to geopolitical shocks?
What's the hardest lesson you've ever had to learn about money? What’s the most powerful one?
For many folks (myself included), these lessons come from hard-earned experience. (1) They aren’t taught in a classroom. Instead, many folks go to the school of hard knocks. It’s the learn-as-you-go way to understanding personal finance. (1)
And those lessons we pick up can shape how we think about and handle money. (2)
They can also stick with us for life.
So, what are the money lessons that are never too early to know?
Are there any that you still have to learn? Or get better at?
Let’s find out in this month’s Visual Insights Newsletter. These essential finance lessons aren’t typically taught in school, but they’re still incredibly valuable to know as early as possible.
And they can take some people a lifetime to learn.
Hope this helps you out there!
Markets cratered this week, heading into correction territory, and then bounced right back.1 And then continued bucking and kicking the next day. Weird, right?
Not really. These things happen pretty regularly when investors get jittery. Let’s talk about what’s going on. (Scroll to the end if you just want my soothing takeaways.)
What led to the giant selloff?
A few things: Fears around the Federal Reserve raising interest rates and what rapidly removing support could do to markets and the economy. (2) Inflation worries (it's at a 40-year high). (3) Tech earnings. (4) A potential hot war in Ukraine. (5)
Bottom line: markets are being driven by fear, anxiety, and uncertainty.
