There is plenty to worry about these days. Top of mind is the escalating tensions between Russia and Ukraine. The U.S. has closed the embassy in Kyiv and warned of a dramatic buildup of Russian forces on the border with Ukraine.1 It's unclear whether Russia is willing to diplomatically resolve security concerns about Ukraine joining NATO.2 Closer to home, high inflation persists, and the Federal Reserve is preparing to tighten monetary policy which means increasing interest rates. The question is how many and how quickly. The Federal Reserve may aggressively raise interest rates to fight inflation.3 The Federal Open Market Committee will debate that next month. And while Covid is moving away from the front page, the markets have a lingering worry that another variant could emerge. Before long, the midterm elections will begin making headlines as well, as candidates take positions. Add it all up, and you see the S&P 500 teetering on correction territory as some investors ponder the best way to ride out the next few months. If you’re worried about the financial markets, please reach out to me at 928-639-3828. I understand that current events can be a bit overwhelming, and you may feel the need to be proactive. But remember, your financial strategy is based on your goals, time horizon, and risk tolerance, and we anticipate there will be corrections and adjustments along the way. 1https://www.cnbc.com/2022/02/13/stock-market-futures-open-to-close-news.html |
Ukraine, Inflation and the Fed
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February 24, 2022