Inflation is at a 40-year high which leads to a lot of uncertainty out there. What does this mean for stock markets and what does it mean for the economy? Listen in as Gabe and Ryan, Certified Financial Planners discuss the relationship of inflation and interest rates and where we go from here.
The Federal Government uses Interest Rates to slow Inflation. What does this mean for you?
Right now, the federal government is using rising interest rates to slow down inflation. It is a tight rope to walk on, but they are trying to put a big brick on top of the economy which can help to slow inflation. The problem is, it can be slowed down too much, which can lead to a possible recession. Due to this uncertainty, we have this choppy market that we are seeing.
How a Financial Advisor can help you Navigate the Inflated Market
This is why we are here for you. You hire a financial advisor for diversification. Not all assets move the same, even in an inflated market. We have assets in our portfolio that have increased this year, albeit stocks have not. We expect that through the rest of the year it will take a while to slow down this inflation. As we see some positive signs that inflation is slowing down, the market will start to find its feet. Until then, we have a plan in place that is diversified, for this choppy year ahead. If you have specific questions about your portfolio, don’t hesitate to call Gabe or Ryan at SRP.