With the multiple levels of support thrown at global economies and capital markets post 2019, many have forgotten what an economic cycle is, and many are too young to have experienced one.
Welcome Back to an Economic Cycle
Emotional Investing and How to Avoid It
2022 has delivered some record drops in both the stock and bond markets. In the month of September alone, the S&P broke below the previous June closing low, declining 1.03%. Similarly, the Dow dropped another 1.11%. This type of volatility can be incredibly stressful for investors, and understandably so, but it should not be a time to panic. Instead, it’s often a sensible time to lean in.
Are We in the Midst of “The Great Reset”?
It is not unusual for the Federal Reserve Board to tighten monetary policy when the economy is perceived to be over-heated, but such action rarely coincides with a period of back-to-back, negative Gross Domestic Policy (GDP) reports.
Goldilocks Heads Back into the Forest
Absent some blips, the financial markets enjoyed a Goldilocks environment for well over a decade, defined as a well balanced economy supported by moderate economic growth and low inflation (not too hot, not too cold).
Ringing in the New Year with Fireworks
The beginning of any new year is typically a time of hopeful resolutions as we reflect and strive to improve upon the shortcomings of the prior year. Moreover, in the case of ringing in 2022, we were very much longing to see a general return to pre-pandemic norms.
