Ukraine, Inflation, and the Fed

There is plenty to worry about these days. Frankly, you can find something to worry about, locally or globally, at any point in your life! 

Right now, the conflict between Russia and Ukraine and the energy and economic disruptions that are likely to follow are front and center for most everyone. Persistently high inflation and the Fed preparing to raise interest rates are of additional concern in the US.

Though Covid is moving away from being the headline story, the markets have a lingering worry that another variant could emerge. And before you know it, political candidates will inundate us with commercials for the midterm elections.

Blend all this together, and you see the S&P 500 teetering on correction territory as investors determine the best way to ride out the next few months.

We love this piece from JPMorgan's Guide to the Markets. We use it to remind ourselves that: 1) the market is resilient (S&P annual returns since 1980 have been positive 75% of the time), and; 2) it is routine for the market to experience a pullback or drop during any given year. The market can be volatile, there is a 24-hour news cycle that generates endless noise, and we have lots of information (accurate and inaccurate) at our fingertips. In our opinion, having a plan and adhering to it is the best way to navigate these issues mentioned above. 

If you're worried about the markets, please take some time to give us a call. We understand that current events can be a bit unnerving, and you may feel the need to be proactive. 

We strive to create financial strategies based on individual goals, time horizons, and risk tolerance, and we do our best to prepare you for unsettling events along the way.

Overman Capital is here to help. Connect with us online, give us a call at (252) 635-6666, or stop by the office in historic downtown New Bern, NC, to learn more.