June Edition Navigator
By Allen Davis
For our June DFG Navigator, Daken Vanderburg has done us all a great service as he addresses the issue most of us would point to as the most troublesome aspect of today’s economy – inflation. I write this on the day that inflation seems to be ticking downward, as most experts have predicted, while the economy appears to be gaining strength (consumer spending up in April) in spite of inflation, Covid, war, and looming recession! It’s time for a deep breath, and we hope this current Market Update allows you to take one.
I’m also attaching articles from the financial press that I think will also help – one on the virtues of continuing to invest during bad times in the market as well as good; the new world of Socially Responsible Investing now known as “ESG” investing (with a focus on Environmental, Social, and Governance factors); and the current climate in relation to Roth Conversions of existing Traditional IRAs.
Happy reading, and as always be in touch any time for any reason!
Have you ever seen a dog chasing a car and wondered: “What happens if the dog actually catches it?” That’s what I thought of recently as I watched Federal Reserve Chairman Jerome Powell discuss the central bank’s new, and suddenly resolved, determination to slow (catch?) inflation. The question then becomes “what happens if they are able to raise rates enough to stop inflation?” More than they bargained for?
We will begin with what inflation is and how high it has become. We will then turn to why it has occurred and wrap up with thoughts and perspective on possible outcomes. Let me also acknowledge that the topic of inflation and, in particular, Federal Reserve policy, is not one most Americans are thrilled about discussing … but I will note it is probably the most important dynamic in play right now (so I congratulate anyone who can make it to the end of this update!).
With that, let us begin.
Financial Press Articles
Stocks Have Been Falling. I’m Still Buying Steadily.
Big stock market losses are nobody’s idea of fun. But they have been happening this year with dismaying regularity.
It’s not just a bad day or a bad week. The S&P 500 has fallen seven weeks in a row and Friday briefly entered bear market territory, Wall Street jargon for a decline of at least 20%. If you are a long-term investor, you may not want to look at your portfolio right now. The numbers may be unnerving.
How ESG scores give investors insight into a company's environmental impact
ESG scores are critical tools for investors who practice ESG investing. If you want to incorporate your values into your investment strategies, ESG scores can help you evaluate a company's commitment to the three legs of the ESG scoring model.
Is A Down Market The Right Time For A Roth Conversion?
While a down market may be cause for concern for some, it’s an opportunity waiting for others. One such opportunity may be a Roth IRA conversion. Is a down market the right time for a Roth IRA conversion for you?