Many of our clients have had quesitons about inflation and how it will effect their portfolio, so I thought I would share some insight. As the economy continues to recover from the effects of the pandemic over the past year, you may have noticed the term ‘inflation’ coming up in the news. But don’t let it scare you! The fact is, some inflation is good because it means the economy is bouncing back.
“Bouncing back” is exactly what it sounds like; stock and bond prices may show some volatility in the short term, as the market and the economy adjust to find a new equilibrium. That’s why, like always, it’s best to stay focused on your long-term financial goals rather than worry over any short-term noise.
Still, it’s reasonable to be well-informed about inflation, so if you’re interested in learning more, we’ve assembled a few trustworthy resources below that help put inflation in economic and historical context.
As always, you can be confident that we’ll continue to monitor economic conditions and let you know if there’s anything we need to change or address. Most importantly, don’t let today’s headlines distract you from tomorrow’s goals. If you have questions or concerns, we’re always available to talk.
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