Reuters | Gary Hershorn | Stock.Adobe.com
Inflation Fears Rise Higher but No One’s Panicking… Yet
Advisors' Academy, June 2021
In last month’s newsletter I talked a bit about brewing inflation fears. Those fears increased in May as prices continued to do the same. That triggered some stock market volatility and a lot of debate about whether inflation might start to impede our economic recovery in the coming months—or even reverse it. According to the U.S. Labor Department, prices today are rising faster than at any time since 2008.* Inflation has been a growing concern for months as our economic recovery from the pandemic has picked up speed. Remember, inflation is defined as “too much demand chasing too few goods and services.” A little inflation is generally seen as good because it means consumers are consuming. That fuels demand, which creates jobs, drives growth and, overall, signals a thriving economy.
Syda Productions | Stock.Adobe.com
As Markets Pause to 'Take Stock', So Should You
Advisors' Academy, May 2021
What a difference a year makes. At the start of May 2020, the stock market was struggling to crawl out of a deep crater triggered by the onset of the Covid-19 crisis. By May 1st it was only halfway back. Meanwhile, the economy was about to experience its worst quarter of economic shrinkage ever. Businesses were shutting down, unemployment was skyrocketing, and the worst was yet to come. The picture could not be more dramatically different in May 2021—but that doesn’t mean we aren’t still facing challenges.