Wealth and Wisdom: Week of June 20, 2022

Under increasing pressure from a falling market, the Federal Reserve did something last week it hasn’t done since 1994: raised short-term interest rates by 75 basis points – three-quarters of one percent – in a single action. The Fed is well behind the curve in the fight against surging inflation and signaled more rate hikes to come.

The equity markets, meanwhile, continue to price in the growing possibility of a recession. The S&P 500 has now joined the Nasdaq Composite in bear-market territory.

Understanding bear markets

The S&P 500 is in a bear market, and the Nasdaq Composite has been there for weeks. What does it all mean for you? (Reading time: 6 minutes)

Is there anything you can do?

Market downturns can create opportunities to improve your financial position and prepare for the recovery. I’ve posted some ideas to our blog. (Reading time: 2 minutes)

SPAC fad fizzles

With the IPO market drying up and regulators bearing down, so-called blank-check companies are checking out. (Reading time: 4 minutes)

Don’t take financial advice from celebrities

Where are Tom Brady and Matt Damon now that cryptocurrency is imploding? (Reading time: 7 minutes)

St. Louis-area housing remains reasonable

St. Louis and Chicago are the only two major largest housing markets in the U.S., not considered overvalued. (Reading time: 3 minutes)

Putting inflation in perspective

What cost one dollar the year I was born costs 10 dollars today. Try this online calculator to see the impact of inflation on your purchasing power. (Reading time: 5 minutes)

Should you keep paying down student loans?

Student loan payments are paused until at least September – but there are many good reasons to keep making them. (Reading time: 5 minutes)

How to unretire

If tough times have you rethinking your decision to retire, here are some things to consider before going back to work. (Reading time: 5 minutes)

Before you walk down the aisle

How will you and your spouse-to-be handle money and plan for the future together once you’re married? (Reading time: 5 minutes)

Mike’s Pro Tip of the Week

What’s the best way to beat inflation and ease the supply-chain crisis at the same time? Buy less stuff! To learn how and get serious, explore the Buy Nothing Project, a non-profit organization with chapters in more than 6,500 communities – including a couple dozen in the St. Louis metro area.

Words to the Wise

“A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.”
– Benjamin Graham

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Brown Family Wealth Advisors and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Expressions of opinion are as of this date and are subject to change without notice. Past performance does not guarantee future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation.