Investors spend much time on anticipated events, the potential outcomes, and implications for portfolio strategy. A review of some recent events can provide perspective for moving onward to economic activity and investing ahead.
Revisit
In its attempt to lower inflation, the Federal Reserve has raised its policy interest rate target to the highest level in 17 years.
Banking
Banking is a core activity in the economy and in financial markets, receiving deposits, making loans and investing. A review of trends in banking can provide perspective for economic activity and investing ahead.
Housing
Shelter is an essential part of well-being, and owner-occupied residential housing provides shelter for many. A review of trends in housing can provide perspective for economic activity and investing ahead.
Changing Expectations
Expectations for future market outcomes often are a blend of historical experience and more recent developments. A review of changing expectations for all assets can provide perspective for achieving investor goals ahead.
Diversification
2022 was a challenging year for most markets, especially stock and bond markets. A review of diversification outcomes over time can provide perspective for investing in markets ahead.
Destruction
In the current efforts to lower inflation, policymakers have shied from including “recession” in their commentaries and prognostications. Instead, more frequently, the phrase “demand destruction” has been used.
Third Year
Even though sitting presidents are not on the ballot, mid-term elections generally are a referendum on their policies and accomplishments in the past two years.
Dilemma
Inflation has accelerated rapidly and its forward trend is uncertain.
Into the Fog
Forecasting future economic activity always is shrouded in fog. A review of recent trends and current forecasts can provide perspective for investing into the fog ahead.