2022 has not been easy on investors. The stock market had its worst first half in over five decades.
And the third quarter has been little better…
- Inflation is continuing to run hot.
- The supply chain is still snarled.
- Lockdowns persist in more than 70 Chinese cities.
- War is ongoing in Ukraine.
- Issues in Washington, D.C., and elsewhere are never-ending…
Plus the Fed let inflation run too hot for too long and is now left playing catch-up. Jerome Powell and company are hiking rates far more aggressively than normal – 75 basis points at a time.
All these developments are weighing on the markets. And while there is a chance the Fed’s actions could push the economy into a recession, Alexander Green reminds us in today’s video that it’s a possibility, not a probability.
He reassures investors by saying, “it wouldn’t be the end of the world” if we do dip further into recession territory – it should have no effect on your long-term returns.
Yet it’s important to remember that money you need in the short term has no business in the stock market.