Typically, I do not get too far “into the weeds” of technical terms in my TGIF 2 minutes messages. However – this has not been a typical last two weeks in the markets – at least not “typical” as defined by the past several years of gradually UP markets (and portfolios) month after month. Thus, a short walk into the weeds to talk a little about inflation is warranted – and may shed light on the volatility we have experienced lately with more likely to come over the next months and year or so.
Also, see this visual of a rocket launch* – and not just any rocket launch, the Falcon Heavy launch as photographed by a friend of mine with years of clearance for NASA rocket launches – as an appropriate comparison to what inflation can look like.
Do we blame it on the Philadelphia Eagles winning the Super Bowl?? (just kidding- I am glad the underdogs won!)
From the archives of TGIF 2 minutes I found a very handy message – one that still holds true two years later for surviving the weakness we are currently experiencing in the stock and bond markets. Here is the original article: click here. The title of the message was “‘Gut Check’ in Rocky Markets” (Jan. 2016). As even as the most experienced savers and investors can tell you, down markets are not fun and they can be scary and stressful. However, I try to remind my clients and friends NOT to allow short-term market moves (weekly, monthly, quarterly…even lasting the course of a year) to lead you to make poor decisions.Rather, make your investing decisions alongside a trusted adviser – and ideally far in advance of a market decline. (Hint: most of my clients can stop reading here and say “TGIF”.)