It’s easy to get caught up in headlines: Inflation. War. Pandemic. Rising interest rates. Sky-high gas prices. Homes are too expensive. Home sales falling fast. Stock market drops.
It’s often hard to know how to act or what to do when world events have a real and personal impact. Some decisions might be easier than others. Gas prices too high? You might choose to ride your bike a little more. Some of these headlines are beyond our individual control.
What our Libro Coaches have noted is a rising level of concern from Owners who have entrusted their investment portfolios with us. Questions like:
- Should I make changes to my investments?
- Should I sell all my markets investments and go to cash right now?
- Who should I speak to about my personal situation?
These concerns are totally normal, but it’s worth noting that fears are not necessarily outcomes.
There are a lot of competing factors at work globally right now including conflict in Ukraine, inflationary fears, supply chain issues, and the rising threat of recession. Depending on who you watch on TV, or what editorials you read you will invariably see differences of opinion. Some pundits will call for doom and gloom, while others will note that it’s smooth sailing ahead. While the truth is likely somewhere in between the two extremes, only time will tell whose forecasts were correct.
Broadly speaking, global markets have been declining recently as investors have been devaluing companies to reflect a slower growth rate and higher interest rate environment. Decisions like the one at the US Federal Reserve to raise the Federal Funds rate by 0.75% on June 15 demonstrate how the actions of central banks, and other large geopolitical events, will likely continue to dominate headlines for the near future. For a deeper dive on these issues, our responsible investing partners at NEI Investments recently shared this market update.
Libro sent out an email in March of 2020, when the impacts of the coronavirus outbreak were first starting to be felt at home, with the intent to give Owners peace of mind. While it may be hard to believe that was over 2 years ago, the fundamental lessons we shared at that time for investors are unchanged, and you can review those here.
Even though market declines like the ones we are seeing now don’t feel good, history shows that a thoughtful financial strategy is still the best way to achieve your long-term financial goals. Staying committed to your personal long-term plan, even when it might feel uncomfortable, is a proven approach.
Our advice is to focus on your long-term goals and, if you need to, discuss them with your Coach. Please don’t hesitate to get in touch with us if you have questions or need any support with your finances.
Libro Coaches are committed to helping you – for the long term.