Critical Takeaways for Savvy Investors
Raise your hand if you’re unsure of what could happen in the coming months.
Is your hand up? So is mine.
Markets and the economy face a confusing barrage of tailwinds (positive) and headwinds (negative). We don’t know which will prove stronger.
There’s quite a bit of hope ahead: we have a resilient economy, the jobs market remains healthy, and stocks could bounce back if inflation and interest rate hikes stabilize.
Bear markets are rough, but exiting a strategy now could cause long-term damage to your wealth if you miss the recovery.
What’s challenging is separating our emotions from analysis of what might be coming (especially when we’re in murky and uncharted waters).
Here’s an analogy:
Have you ever been whitewater rafting?
Imagine us in a raft, navigating a complex class IV rapid called “Scary Bear.”
It’s got huge waves, big drops, hidden rocks, fallen trees, eddies, currents, hydraulics, and more.
We’ve also got a crowd of folks on the banks jumping up and down, hooting and hollering, and yelling advice.
“Don't fall out!!”
“WATCH OUT FOR THE BIG ROCK!!”
If we listened to everyone’s instructions, our raft would end up pinballing between rocks, spinning around in circles, and possibly even flipping over.
So, what do we do?
We read the river.
We develop a strategy that allows for a lot of flexibility in tackling the rapid.
We listen to our guide (that’s me) and paddle together.
We also remember to relax and remember why we're here. That’s the hard part. It’s not always going to be easy paddling in smooth waters.
We’re facing A LOT of uncertainty this year, and it’s not likely to resolve into certainty any time soon. Like professional economists, we’re looking at the data and making careful adjustments.
Times like these favor flexibility, resilience, and a focus on long-term goals.
Bottom line, I’m reading the rapids, adjusting as conditions warrant, and I’ll be in touch when needed.
Questions? Please reach out. I'd be happy to chat.