Gasoline prices are at all-time highs. Food prices are rising. And to top it off, markets are unsettled and there’s talk of a recession.
How can you help protect yourself when things appear to be crumbling?
I made a short video discussing 3 things you can do to make it through this challenging time.
Markets gifted us with another burst of volatility and headlines are looking apocalyptic again.
Some folks might think it's time to bail on markets for the summer, but I'll tell you why that thinking is a mistake.
First, let's peel back some layers to explore what's driving markets. The latest selloff was largely driven by concerns about how the pace of Federal Reserve interest rate hikes could affect economic growth.(1) The Fed's "hawkish" policy of rapidly raising interest rates to bring down inflation seems likely to take a chunk out of economic growth.
Is a recession on the way?
Well, it happened. We knew that markets were going to continue their wild ride, and here we are. Stocks slid into bear market territory after a bad May inflation report showed that prices rose at the fastest pace since 1981.(1) It's clear that the Federal Reserve's efforts to cool inflation haven't borne fruit yet, and investors are nervous.
In response to these concerns about inflation, the Fed raised the benchmark interest rate by another 0.75 points, the most aggressive hike in nearly three decades.(2) Their move will hopefully yield relief from rising prices but also means the cost of borrowing will go up, which could dent business and consumer spending.
Should I be worried about markets?
What’s the number one thing you want to experience on your next vacation?
A new adventure? Local sights or the most authentic version of your favorite dish?
These days, more folks want meaningful interactions when they travel. They’re not just looking for fancy hotels with spas, group tours, parasailing, and the typical resort fare.
