What do investors care about as of May 2022?
1) Historically High Inflation Rates
a. Some are saying we could enter stagflation, which is a combination of slow economic growth with high inflation and high unemployment.
2) Rising Borrowing Rates
a. The fed has made it clear that they intend to raise rates over the near future. The open discussion involves how high will they go and how soon they will hike the rate.
b. There was a major sell off in the Bond Market.
3) The War in Ukraine
a. This disrupted the global markets, increased inflation risks, and the topic has proven to be a market mover. Overall, the domestic market has favored a resolution to the war with a Ukrainian victory.
4) Slowing Economy
a. The GDP for Q1 2022 showed that the U.S. economy shrank 1.4%.
5) Recession
a. The term recession refers to a number of factors including the unemployment rate.
6) More Covid Shutdowns
a. China has been in a lockdown during Q2 2022 which investors fear will hurt demand which will adversely affect certain investments.
b. General concerns that another outbreak could hurt our economy.
7) Shifting Trend to a Bear Market
a. This means a downward price trend for the market.
8) Corporate Earnings Reports
a. Are corporate profits sustaining these conditions?
Bulldog Financial Planning can help put together an investment strategy to help mitigate these risks and plan for the future ahead. As with all investments, future performance of these strategies cannot be guaranteed.
