Wild Rides

Markets bucked and sold off again.(1) Should we be worried?

Not necessarily. These things happen pretty regularly, especially when headlines are negative. In fact, you might recall that we kicked off 2022 with a big drop.(2)

So, let’s talk about what’s behind the latest wild market ride. (Scroll to the end if you want to skip right to the reassurance.)

What led to the selloff?

Primarily, economic worries.(1) Worries about new COVID-19 surges. Worries about Ukraine. Worries about the U.S. economy.

A report just came out showing the economy shrank by 1.4% in the first three months of 2022, surprising analysts who expected positive growth of 1.0%.(3)

Appreciating Beauty

Today, a quick overview of what's going on in the financial and economic world.

(Plus a discussion of the hunt for beauty in the mundane.)

Stocks seem to be caught in a volatile pattern as Q1 earnings season heats up. Something surprising could trigger a big move, but it's hard to predict anything with certainty.

A potentially bigger concern: A number of economists think that a recession may be on the horizon.(1)

The latest forecast by the International Monetary Fund predicts that Russia's invasion of Ukraine is going to take a chunk out of global growth this year and next.(2) Fannie Mae is forecasting slowing growth in 2022 and a recession in 2023.3 When multiple forecasts start pointing in the same general direction, it’s worth paying attention. So, what do we do with that information right now?

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Power In Uncertainty

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You’ll often hear folks like me say that investors or markets “hate uncertainty.”

And that causes market drops and volatility.

Why do we hate uncertainty so much?

And how can we look past initial reactions and embrace the power of uncertainty?

I made a short video discussing 3 secrets to embracing the power hiding inside uncertainty.

You can watch it here.

Better or Worse? Staying Positive

First, a quick note: There's not much new perspective on current events I can offer. Markets are still locked in a volatile pattern and will probably continue that way for the foreseeable future. We're watching the data closely.

Today, I have a big-picture question for you if you're interested.

While absorbing the recent news, we can be forgiven for thinking that the world is going off the rails. There's a global pandemic, worrying inflation, atrocities in Ukraine, and "unprecedented" developments everywhere. A fear arises that it's all getting worse, somehow.

If we feel that way, we're not alone. A lot of people feel that way. (1)

So, let's ask the big question: Is the world getting worse? Or is it actually getting better?