Financial & Behavioral

Appreciating Beauty

Today, a quick overview of what's going on in the financial and economic world.

(Plus a discussion of the hunt for beauty in the mundane.)

Stocks seem to be caught in a volatile pattern as Q1 earnings season heats up. Something surprising could trigger a big move, but it's hard to predict anything with certainty.

A potentially bigger concern: A number of economists think that a recession may be on the horizon.(1)

The latest forecast by the International Monetary Fund predicts that Russia's invasion of Ukraine is going to take a chunk out of global growth this year and next.(2) Fannie Mae is forecasting slowing growth in 2022 and a recession in 2023.3 When multiple forecasts start pointing in the same general direction, it’s worth paying attention. So, what do we do with that information right now?

Power In Uncertainty

You’ll often hear folks like me say that investors or markets “hate uncertainty.”

And that causes market drops and volatility.

Why do we hate uncertainty so much?

And how can we look past initial reactions and embrace the power of uncertainty?

I made a short video discussing 3 secrets to embracing the power hiding inside uncertainty.

You can watch it here.

Powerful Investment Myths

Have you heard that we only use 10% of our brains? Or that lightning never strikes the same spot twice? Think those are scientific facts?

Well, they’re not. They’re actually a couple of myths that have been debunked. But many folks still take them for facts. (1)

In the long run, believing those myths may not matter at all. You may lose a trivia game, but those myths won’t affect your wallet or financial decision. The myths about investing can, though.

Have you bought into any of them without realizing it?

Investment myths can easily disguise themselves as facts. And they can mislead us into making choices that don’t line up with what we really need or want. 

Those myths and the facts behind them are the focus of this month’s Visual Insights Newsletter.

The truth is it’s easy to fall for the myths about investing, no matter how old or smart you are — and no matter what experience you’ve had in the markets. If you know the facts, though, you can look past the fiction and make better, more sound investment decisions.

And that can help you stay on track to the financial future you really want.

Go ahead and click here to see if you’ve fallen for a myth about investing.