The Retirement Rise 5.1.2023
No recession here! And the stock market seems to agree!
This Week’s Good Financial News
Everyone keeps talking about the upcoming recession, but it just hasn’t happened yet. A few facts:
US GDP grew at a 1.1% rate during the first three months of 2023.
Personal consumption accelerated 3.7% during this same period.
The unemployment rate is a historically low 3.5%.
No recession here!
Look, living with uncertainty is an economic and human reality. We can’t predict the future. Even with the good news above, I can’t say for certain what the future holds or whether or not a recession is around the corner.
But neither can you. And neither can journalists or some big-shot fund manager on CNBC.
So if you feel like a recession is imminent, check your bias. It sure is heck isn’t here yet. More importantly, there is much to celebrate and feel good about.
An Investment Note for Retirees
Speaking of recession risk, the market doesn’t seem to care.
The S&P 500 bottomed on October 14th, 2022, after a 25.3% decline.
Ouch!
But what happened next?
Even as the Federal Reserve has continued to hike short-term rates in its quest to curb inflation, the market has shrugged in any and all concerns.
The S&P 500 has increased 13.61% from its lows and is up 8.59% in 2023. International stocks have performed even better, with the MSCI EAFE Index TR up 11.53% to date in 2023.
The market doesn’t turn around when things start getting better. It often turns around when things stop getting worse.
This reminds me of one of my investment principles: Stick With It.
Plan →Invest/Implement→Stick With It
