The market volatility that caused investors to experience strong losses in early 2022 has returned, driving the S&P 500 to new lows for the year on Monday, September 27. Whenever there is volatility, it's helpful to ground the emotions we may feel in context. Here's a brief look at how we got to this point. Causes of Increased Inflation and Volatility Markets entered 2022 with concerns about whether inflation was going to prove to be persistent or transitory, and two events early ... [Continue Reading]
Articles and resources related to Inflation.
In what is one of my absolute favorite financial books of the past decade, The Psychology of Money, Morgan Housel introduces us to the concept of “appealing fictions.” Housel defines an appealing fiction as follows: Something you desperately want to be true because of potential huge upside.Is backed up by limited or no data, observation, or reasonable common sense.Polarizing in nature drawing people into factions or tribes. He goes on to describe these “extremely powerful” narratives ... [Continue Reading]
Inflation, an issue which the Federal Reserve initially discussed as a transitory event driven by pandemic-related supply chain bottlenecks and staffing shortages, may persist longer than expected due to the economic sanctions being placed on Russian oil exports. Oil is a critical input to the global economy, and the recent surge in prices will lead to higher producer and consumer prices in months to come. Inflation and Retirement Inflation is one of the largest risks facing retirees, ... [Continue Reading]
Back in November, when the weather was warmer and the world was a bit more open, I hosted a gathering in my backyard to celebrate the 40th birthdays of two of my closest friends. As a part of the evening’s festivities, we all gathered around the roaring fires and each guest took a turn sharing a nugget of wisdom or lesson learned over the course of their ever-changing life. Some were funny enough to bring people to the edge of tears, while others were heartfelt and emotional enough to take some ... [Continue Reading]
Headlines are crafted with a goal of grabbing your attention. They are designed to get you to buy, click, or react. And they often do this not by focusing on topics that engage the areas of your brain responsible for logic and reason, but rather the more primal elements of greed and fear. Even armed with that knowledge, their siren song is hard to resist. Take for example the widely discussed financial topic of the moment—inflation. Reading headlines like, “The Specter of ... [Continue Reading]