Many of our readers have IRA’s and 401K’s and investment accounts at financial firms.
During the past two months, we have witnessed the steady decline and volatility of the stock market and the inevitable impact it has on our investment accounts.
The good feeling caused by our investment accounts being flush with money have been replaced by the exact opposite situation.
Our investment accounts are declining, and precipitously.
What to do?
Many people sell when they shouldn’t and end up suffering horrible losses that take years to replenish.
Yet all of us need money, and this requires having money on hand to meet obligations.
How long can we watch our accounts disappearing before we have to take action – whether we regret it or not?
With the stock market tanking dramatically, and with talk of a recession, and with the reality of inflation at its all-time modern high, the market bust is a real time, heavy duty problem that burdens the minds of everyone that has something to lose.
The upward trend for now is history.
The upward trend went on for longer than a decade. Even the after-life of the pandemic couldn’t stop the powerful recovery we all enjoyed, as well as the government aid that helped out so many Americans.
Now comes the harsh reality that what was borrowed has to be repaid.
Interest rates must be raised to cut inflation.
Raised interest rates will negatively impact home sales, car sales, fuel sales as higher interest rates cause the price of mortgages and all borrowed money to soar.
What was high is now heading in the other direction. The low period we are entering could last a year or two or three…or it could just go away like a bad headache.
This one, it appears, will be a headache not going away anytime soon.