Retire Right With Brad White

For those that go “well the market is down 13% first four months to the year, and were hearing now we could be entering a recession and having more inflation – so we haven’t even seen that part yet!” - this is why the term leading indicator is so important to note.

Market will remain choppy and may at best manage single-digit gain in 2022 –Vanguard projects annual gains in U.S. stocks of only around 3% to 5% over the next decade after a rise of nearly 27% last year in the S&P.

Do you own actively managed (traditional) Mutual Funds in your non-qualified accounts? Mutual funds are designed to do two main (good) things – diversification and professional management. However they don’t actually “trade” they “redeem.” so inside the fund might be 100 stocks, and the whole idea is the manager is choosing and buying and selling them inside the fund the whole time – for a fee. And the idea is you don’t know how or what to buy over time, so you only have to buy this easy fund and they do all the internal stuff.

All the headlines talking about a possible US recession on the horizon..... what does this mean for your investments and retirement plan? On todays show, Brad reviews basic facts at a very high level. Economies and Markets are of course very connected – but they don’t move in lockstep with each other at all. The market, is a leading indicator for the economy. The market reacts today based on what it THINKS the economy will do in the future.

On March 16 the Fed approved a .25% rate hike, which was the first time this has happened since 2018. Also, the indication is that they will do the same all 6 coming meetings remaining in 2022 – we had an inflation reading of 6.1% in January! US inflation hit a 40-year high of 7.9% in February!

The market immediately assuming this is bad for oil supply and prices increasing as response.

How do geopolitical events both here and abroad can have an effect on the markets, but how can they effect our portfolio?

The house gets zero excitement, gets zero thrills, and gets nothing in the short term. the saying “money won is sweeter then money earned” is true. however, its just not profitable. the house builds in actual math that over the long term wins small amounts of money consistently and ultimately builds really huge expensive buildings and big wallets.