2 Keys for Investors as Recession Fears Escalate
Dave Gilbert here, Editor of Smart Money . We humans are hardwired to pay close attention to potential dangers. A hundred thousand years ago, it’s how we survived; constantly worrying that a tiger or bear might be around the corner was a valuable instinct. We may not encounter ferocious wild animals in our day-to-day activities anymore, but our instincts remain a part of who we are. We are still deeply in tune with guarding ourselves from anything that could pose a threat… including a stock market that’s a bear. One potential danger facing investors growled a little louder last week, and investors’ “fight or flight” instincts kicked in. Most of us chose “flight,” as Federal Reserve Chairman Jerome Powell warned last Friday that he would do whatever it takes to get inflation under control. He spoke of interest rates possibly remaining high for “some time.” And he said… While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.
2 Keys for Investors as Recession Fears Escalate
Dave Gilbert here, Editor of Smart Money . We humans are hardwired to pay close attention to potential dangers. A hundred thousand years ago, it’s how we survived; constantly worrying that a tiger or bear might be around the corner was a valuable instinct. We may not encounter ferocious wild animals in our day-to-day activities anymore, but our instincts remain a part of who we are. We are still deeply in tune with guarding ourselves from anything that could pose a threat… including a stock market that’s a bear. One potential danger facing investors growled a little louder last week, and investors’ “fight or flight” instincts kicked in. Most of us chose “flight,” as Federal Reserve Chairman Jerome Powell warned last Friday that he would do whatever it takes to get inflation under control. He spoke of interest rates possibly remaining high for “some time.” And he said… While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.