The markets are forward-looking. People always want to know … What’s next?
To get an idea of what may be coming, you will need a better understanding of financial markets right now. That’s one of the keys to being prepared and taking steps with your money to be prepared for the future.
In 2022, it’s not hard to see what’s coming — because it’s already happening.
In a word…
VOLATILITY.
We’re in the midst of volatility — wild volatility. It’s happening now, and it’s likely going to continue. Here’s why…
What’s Driving Volatility in 2022?
Where to start?
To start, Inflation and debt are two big drivers of the current market conditions.
As of this writing, U.S. inflation is up over 7% — the highest rate in four decades.
At the same time, supply chain issues are affecting just about every business sector. Some companies are doing well. Some, not so much. It’s created unexpected price hikes in many areas.
Yes, you could say that volatility is a big thing right now. It’s not going to stop any time soon…
The Fed Fans the Flames
Here’s why the current market volatility isn’t going anywhere.
First, there’s no end in sight for our inflation and debt issues. We’ll need to deal with them at some point.
In a recent blog post, we discussed the decoupling of Wall Street and Main Street.
Currently, the markets are largely being driven by what the decisions of the Federal Reserve. What are they doing? Creating money out of thin air.
The United States is printing roughly a trillion dollars a year — then turning around and lending it back to ourselves.
These times are unprecedented — there has never been so much financial intervention in our markets.
As previously mentioned, this is not sustainable. At a certain point, something will have to give. However, this volatility will continue to drive the market, at least for the remainder of 2022.
Take Proactive Measures to Protect Your Assets
These volatile market conditions are unlikely to ease up in the foreseeable future.
Saving the “old-fashioned” way, with a low-interest yield account, simply cannot keep up with inflation. It’s necessary to take another approach that sets you up for growth and protection.
It can be scary navigating the choppy waters of the current market volatility. That’s why we’re here to help.
At Ty J. Young Wealth Management, we’ve seen and experienced all sorts of markets. We’ve spent years developing the knowledge, experience, and resources to help you build an intelligent portfolio that’s built to last. Ready to invest in your future? Reach out today.
Do you understand why it’s important to plan ahead in a volatile market? How are you staying safe in the choppy market?