Market Trends: Understanding the Economy and Potential Recession
Plus inflation insights and a closer look at our financial landscape. All with Jeff Sommer from the New York Times.
Recent weeks have seen global markets decline sharply as investors sell off government bonds, oil prices drop, and cryptocurrencies falter. The S&P 500 has plummeted in 10 out of the past 11 weeks, marking a more than 21% decrease since January. To combat inflation without triggering a recession, the Fed raised interest rates by 0.75 percentage points last week, the largest hike in 28 years. This drastic move aims to curb the soaring prices Americans are experiencing. Many economists anticipate a recession by 2024, with some suggesting it may already be upon us.
What does this mean for us? Aside from taking a moment to breathe, what steps can we actually take? In this week's podcast, we chat with Jeff Sommer, who pens the “Strategies” column for the New York Times, about how we can gain control in these uncertain times and how anxious investors should respond. How do we maintain composure and make choices that protect our future? What should we do to brace for an impending recession, and how do we navigate inflation? Jeff also shares the best strategies for those new to investing and explains how bear markets can present unique investment opportunities.
In the Mailbag segment, we address a teacher's query on the best ways to invest her pension. For Thrive, we discuss whether travel rewards credit cards are worth the effort.