When headwinds become tailwinds
Updated: Jan 21, 2022
We love routine.
We can control our schedule, plot the path we take each day, avoid any major decision.
There is cool wind in our hair. (The Eagles, Hotel California)
Thinking back on 2021, the economy and business were pretty good for a lot of folks.
Despite COVID shutting down large segments of the economy, economic data quickly recovered to pre-COVID levels thanks to the Fed and fiscal stimulus.
Like with any good story, there are twists and turns. Surprises that jump out at you. We can find ourselves having to navigate a new environment.
But if take time to prepare, you can come out ahead as opposed to letting something whip you around.
Fiscal stimulus let the economy catch a wave, but now it is getting pulled back
Lower interest rates lowered the cost of buying houses, cars and, or course, boats but now interest rates are higher.
Now 2021 tailwinds are growing into 2022 headwinds.
With ½ the amount of fiscal stimulus, and with higher interest rates we are having to fight the current.
We can look at other calmer seas aboard where headwinds are becoming tailwinds.
China just slashed interest rates.
That of course leads us to emerging markets.
The dollar is getting weaker and interest rates are getting cut overseas.
Economic activity is likely to be getting some steam.
Relying on what has worked in the past may be hazardous to our wealth and success.
Now is the time to shore up your savings, make good choices on spending, look overseas.
Warren Buffett once said that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful.”
Your Friendly Wealth Engagement Guide
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Wealth Engagement LLC
An Independent Registered Investment Advisor (RIA)
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Atlanta, GA 30327
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