The first three months of 2022 have been a roller coaster for markets. With the war in Ukraine and the financial war on inflation, investors have had to monitor unpredictable headlines seemingly by the hour. But even in this event-driven market, there are still positives to look forward to in the year ahead.
Conventional wisdom says that what goes up must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when it’s your money at stake.
After several weeks of buildup and anticipation, Russia launched a full-scale invasion of Ukraine last night. Rocket attacks on key infrastructure, cyberattacks on government websites, and troop advances follow on the heels of a massing of military forces on the Ukraine border as well as several previously Russian-held areas of Ukraine.
During his working years, Fritz Gilbert was a super saver: He socked away an average of 20 percent of his earnings and invested carefully. But when he retired from a 33-year career in the aluminum industry in 2018, he and his wife, Jackie, switched their mindset. Within the confines of their carefully constructed financial plan, they became unabashed spenders.
In late 2021, after months of growing anticipation about inflation pressures, the closely watched Consumer Price Index (CPI) measure surged to 6.8 percent on a year-over-year basis. The November reading represented a nearly 40-year high and triggered a tsunami of alarming headlines across financial media outlets.
After a turbulent 2021, everyone is ready to get back to their normal lives. But for investors, getting back to normal might require adjusting expectations, especially after three years of tremendous returns. The good news is that even when markets conditions return to normal, there is still plenty for investors to look forward to in the year ahead.
Some investment objectives exist far over the horizon. Planning and investing for extremely long-term goals, such as multigenerational wealth planning for children, grandchildren, or philanthropic goals, often requires a different set of strategies, habits, and tools than those used for nearer-term goals. The greatest difference is not necessarily the types of investment strategies or vehicles employed. Rather, it lies in the mindset of the investor.
So far, 2021 has been a year of notable growth for the economy. But as we entered September, a shift in the markets began to occur in part because of several areas of disruption in the global production cycle. Tune in to learn more about these bottlenecks and what could happen if they are not resolved in the short term.