Our focus determines our reality: what a great life lesson, and it holds true in the markets as well. Currently we are focused on Russia’s invasion of Ukraine, and that has put the market in a foul mood. This situation with Russia is serious and I do not want to suggest otherwise. Having said that, our focus here is financial.
What is the real rate of growth? GDP growth rebounded in the fourth quarter of 2021. After slowing to 2.3 percent in the third quarter, the initial reading for fourth quarter is 6.9 percent. Does that mean we are back to the solid growth of early 2021? It doesn’t feel that way.
After two big up years, the market has begun 2022 on a down note. This is how markets work: two steps forward and one step back. There is plenty to worry about, so what is an investor to do?
After a good year for the market, we seem to be ending on a sour note as the market has been mostly down this month going into the last week of trading. Will it continue or will we have a Santa rally? Only time will tell, but my money is on Santa pulling through.
The market today is much like army golf – covering a lot of ground but going nowhere. Why all the volatility? There have been many excuses given by the media, meanwhile we continue to get inflationary signals. Now that inflation is back, every other economic data point must be looked at in this light.
