After a few weeks of increased volatility and pullbacks across stock indices, a subtle calm has returned to the market. Stocks trended higher through the week with little fanfare. Is it time for investors to breath a sigh of relief from the recent market correction?

Psychology and Your Portfolio

Many of the market’s movements can be attributed to the psychology of market participants. After a ten percent pullback in the markets, accompanied by soaring volatility, the recent week has been marked by a sense of calm and a steady move higher in stocks. Much of this calm may simply be investors’ sense of relief that the market has “stopped going down” and is why an investor who lost 10% from recent highs suddenly feels better while the market has recovered only half of that move. It’s also the same psychology that makes the recent lows an import point to watch.

Inflation Perks Up

This week’s CPI numbers highlighted inflation picking up steam. In fact, shortly after the numbers were released the market saw a pre-opening move lower to the tune of 1%. The question investors now must face is whether inflation is getting ahead of the Fed and their tightening cycle. If so, then some of the key inflation names may be an option for investors to find opportunity in this environment. We’ll highlight a few of the areas we’ve been looking at recently to find potential opportunity in this stage of the economy.

Time For A Plan?

If you’re concerned with the recent moves in the market or how inflation could affect your portfolio, it may be time to run your numbers. Completing our LIFE Plan process will give you some of the confidence you need to know your investments are aligned with your required rate of return.  Contact us to find out more.