Market Predictions
T
he title of this month’s article is a little misleading, as I do not like making predictions, especially when it comes to the stock market. It’s always humorous to hear the media making their annual predictions for the New Year. I have a hard enough time predicting what a week out in my life may look like, much less a market with a number of moving parts, people, institutions, etc, who shape it. I would prefer to focus on facts instead of making predictions. What facts might I be talking about? n Interest rates are still low but likely rising n Inflation is the highest it’s been since the late 1970s/early 1980s. n Unemployment is very low, and anyone who 32 Lake Martin Living
wants a job can typically find one. n Consumer balance sheets are strong with lots of cash in the bank. n Corporate profits have risen and are still rising with S&P 500 profits in 2021 at all-time highs. n China and Russia are currently dominating the news with Taiwan and Ukraine. The above is just a small snip of what is going on in our economy and the world. There are a million things more that could be listed. Next year, the list will change with some to the good and some to the bad; however, nobody really knows. I believe the best thing to focus on is where we are today and plan accordingly. In saying this, rates are low and rising. If you understand how bonds
