Inflation…Fear of Recession…What To Do?

Markets are down 20% plus; Inflation is upon us now and Fear of Recession is growing

Year over year inflation has climbed overall to 8.6% as of May 2022.

The Fed increased rates by 0.75% in June rushing to normalize policy, its biggest hike since 1994, leading to the current Fed Funds Rate of 1.75%.

National Average 30-year mortgage rates are up to 5.91% and 15-year mortgage rates are up to 5.11%.

Markets are facing high volatility in the middle of inflation, supply chain shortage, war, and fear of recession. S&P 500 has lost 20% plus year to date as of 6/22/22.

Economists are expecting growth slowing as Fed increases the rates and the fear of recession is growing.

What should you do? Should you stay put? Should you sell? Should you buy?

Review your portfolio, reposition the investments keeping in mind the tax consequences. Take defensive positions, consider low volatility funds/ETFs, short-term bonds. Continue to save and invest periodically taking advantage of the dollar cost averaging. If you are closer to retirement, you need to revisit your retirement plan with your financial advisor since high inflation negatively influences your retirement income.

If you need help reviewing your investments or savings plan or retirement plan, schedule your initial FREE Consultation here.

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