What impact will rising inflation, Russia’s invasion of Ukraine, and the lingering effects of a global pandemic have on world markets? While the DOW & S&P 500 have entered correction territory, the NASDAQ, as of this writing, is now in bear market territory and the worst may be yet to come.

Inflation is at an all-time high over the last 40 years. Consumers are seeing their cost-of-living increase on everything from the grocery store to the gas pump. With inflation on the rise, soaring prices are beginning to take a bite out of consumers’ real purchasing power. Considering two thirds of the U.S. economy is driven by consumer spending and not business-to-business, a slowdown in consumer spending will undoubtedly have negative consequences on the U.S. economy.

Add to these concerns, Russia’s invasion of Ukraine and the United States current administration’s policies toward energy (i.e., forced closure of the Keystone XL pipeline and tighter restrictions on U.S. Oil producers at the same time), and you have a recipe where we could see the price of oil reach $175 or more per barrel. When the price of oil is in excess of $100 a barrel, corporate earnings will take a hit and analysts will begin making downward revisions on their earnings estimates.

Considering the Federal Reserve seems poised to follow through on their announced plans to raise interest rates several times this year, one could conclude we have all the makings of a recession forming. Times like this bring about opportunities to revisit your investment strategy and the overall allocation of your assets to make sure your portfolio is in alignment with your goals, objectives, and overall risk tolerance. Keep in mind, bull markets follow bear markets. Work with a professional. Do not speculate and avoid trying to time the market. Timing the market is an exercise of futility. Time in the market is what matters most.

Any opinions are those of J. Greg Garner and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The Dow Jones Industrial Average (DJIA), commonly known as "The Dow" is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system.

Any opinions are those of J. Greg Garner and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The Dow Jones Industrial Average (DJIA), commonly known as "The Dow" is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system.