November 2022 – Market Update
Some may not understand why the Federal Reserve is so center of attention and how that relates to the markets, economy, or even your personal investment accounts… so I will try to briefly explain how we got here and where we are. Let’s travel back in time to the summer of 2020. COVID really did a number on the entire World. Maintaining any kind of lifestyle wasn’t just boring… it was scary. For some time, many were afraid of how they were going to work to make ends meet. Our government, our Federal Reserve, and many of the same agencies around the World, all started pouring out stimulus money. Over $2 Trillion dollars was poured into the US economy alone. As we adjusted to that life of less travel, less eating out, more time at home, etc.… our spending habits changed, our savings habits changed, and our demands changed on every level. This put a large imbalance in the supply-demand ecosystem. An ecosystem that is at its best when it is balanced and can be vicious when it isn’t. As the imbalance remained and outside geo-political events started to flare up globally, too much demand for too little supply started to drive prices higher… we call that, inflation!