An update on the current market conditions

June 28, 2022   |   Investing

“The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.”
— Warren Buffett

Note: This video was originally published in our monthly client e-newsletter, Guidepost. 

The bond, stock, and real estate markets are still reacting to inflation, recession, and interest rate hike concerns. The market doesn’t like uncertainty, which we continue to have a fair amount of right now. The primary debate is whether the Fed rate hikes will be effective in taming inflation before it becomes entrenched or if the rate hikes will cause a recession or not.

While the Fed is being flexible and committed to bringing inflation back to its 2% target (which is good), the reality is that we’re going to see short-term volatility.

In our opinion, the best way through this for our clients is to maintain a long-term perspective, have confidence in your overall financial plan, and stick to the investment strategy we have developed together.

We encourage you to read this article by Capital Group: Keys to prevailing through stock market declines

Below is an excerpt from the article with some helpful strategies to get through turbulent times:

• Look beyond the headlines. Sensational news headlines are meant to grab your attention, but it can be dangerous to let the media influence your investment decisions. Ignore the noise and stay focused on your goals.
• Don’t forget history. Market declines are part of the economic cycle. Historically, recoveries have followed downturns.
  Maintain a diversified portfolio. Different investments may go up and down at different times. Spreading your money over a variety of investment types and regions can help reduce volatility in your overall portfolio.
• Don’t try to time the market. No one knows the perfect times to get in and out of the market. Consider holding quality investments with the potential to rise in value over the long term.
• Invest regularly, even when the market is falling. Instead of fearing down markets, think of them as opportunities to invest at lower prices.
• Keep in touch with your financial professional. Your financial advisor can help you avoid making decisions that could jeopardize your long-term investment goals, which often remain unchanged during market declines.

Helping our clients navigate difficult markets like we’re in right now is a big part of our commitment to our clients and their families.

As LifeGuide’s managing partner, I’ve seen firsthand the long hours, late nights, and hard work that the LifeGuide team has put in to manage through this environment. I sincerely appreciate their expertise and willingness to go the extra mile.

On behalf of the LifeGuide team,

  Doug Denlinger, RLP^®, CKA^®
  LifeGuide Managing Partner