As I was getting my workout in this morning, I had an interesting conversation with one of my friends at the gym.
While on the rowing machine he quipped to me,
“Elliot, I have never felt this depressed about the current American condition and our future. Every headline I read, every radio station I listen to, every word I hear spoken is all negative. All the time.”
This man has a point, and the headlines keep coming.
In breaking news, a new Covid variant has been identified by scientists declaring it a variant of concern. President Biden is already implying that potential shutdowns may be on the way as we close our borders from a surge of migrants entering the US.
Expecting China to become more resourceful against global issues and assume responsibility on the world stage, they instead are gearing up for a long-term economic and data war backed by a military second only to the US.
We thought that Middle Eastern countries would play nicer with each but instead, a cyberwar has begun.
We presumed the Climate Change Summit would propel countries to change their environmental policies, but the biggest polluters weren’t even present.
We hoped that once the worst of the lockdowns had passed that the economy would start booming and make a comeback…
On the contrary, inflation is on the rise. Beef and other commodities are up by 20-40%, gasoline is up more than $1.50 per gallon nationally. In California alone, gasoline is up to $5.00 per gallon
Can you see why folks in the U.S. are depressed, and suicide rates remain at an all-time high?
The important question remains: How will this affect your investments?
To start, there will be a higher level of volatility in the coming months. Expect more ups and more downs, periods of unpredictability, and significant movement.
Thankfully, we are a prospering country and significant movement can also mean significant growth and profit. You will need more patience to hit your goals.
During previous years of the 1960s through 2010, folks could expect a different rate of growth: Real estate to grow at a rate of 3-5% per year, bonds to grow at a rate of 4-5% per year, and stocks to grow at a rate of 6-10% per year.
Recently, we have experienced significantly greater growth than we may see in the future.
Inflation is most likely here to stay with national rates between 3% and 5% with certain commodities rising by double-digits.
Historically, however, we always go back to these normal averages.
Will money be made in certain niches?
There are ways to take advantage of the upside but navigating the route will be a challenge that requires resilience.
So, hang on and be patient!
This volatile market creates lucrative buying opportunities, and our job is to find these for our clients with our high level of expertise.
If it’s money, it’s personal. We’re here to help.
Call me anytime to discuss your portfolio at 925-314-8503 or [email protected].
Now is a great time to review what you have and plan for 2022.