The market has been in a tailspin and a lot of factors are playing into this. From a geopolitical standpoint, there’s a lot of uncertainty so we are seeing some bearish trajectories. But this may be a buying opportunity according to David.
The Russian invasion of Ukraine could really impact Americans’ wallets when it comes to energy and consumer spending, but only time will tell. We are still expecting rate hikes despite this conflict and David assumes this won’t change. The Fed tends to avoid uncertainty when possible. On the other hand, David sees inflation as mostly a supply problem and something that can be addressed. In the short term, if we see some supply chain relief, we could see prices come down. In the long term, productivity will drive inflation down.
David doesn’t think investors should be worried about a recession in the near future. The economy, which is the basis of the market, is doing very well. If you are getting closer to retirement these events may seem daunting, but having a strong and diversified plan can protect your future.
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