Recession ahead?
A number of economists think that a recession may be on the horizon.(1)
The latest forecast by the International Monetary Fund predicts that Russia's invasion of Ukraine is going to take a chunk out of global growth this year and next.(2)
Fannie Mae is forecasting slowing growth in 2022 and a recession in 2023.(3)
When multiple forecasts start pointing in the same general direction, it’s worth paying attention.
So, what do we do with that information right now?
Do we panic and freak out? Bail on our investment strategies to head off losses?
Nope.
We wait and see. We sharpen our tools. We look for opportunities.
It's natural to get uneasy when markets get dicey, but knee-jerk reactions can be costly.
An old proverb says: “Predictions are difficult, especially about the future.”
Forecasts are usually wrong in at least one way, and relying too much on what "might" happen is a recipe for mistakes.
So we keep our eyes open, our wits about us, and live our lives as we usually would.
A recession (or bear market) is not inevitable, so we shouldn’t act as though it is.
Have questions or concerns? Reach out.
Eric Maldonado, CFP®, MBA
Owner, Aquila Wealth Advisors, LLC
(805)250-4552 | eric@aquilawealth.com
872 Higuera Street, San Luis Obispo, CA 93401
2 - https://www.cnbc.com/2022/04/19/imf-cuts-global-growth-forecasts-on-russia-ukraine-war.html
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