Do you know what effect inflation and the recent banking crisis might have on your investment portfolio?
In it, you will discover three important steps to managing risk in your investment portfolio and maintaining a stable mindset. In addition, Tim will walk through the recent banking crisis and a brief history of inflation, rising interest rates, and the Fed’s use of quantitative easing. Watch the video or read through Tim’s letter below the video.
What Is Happening With Inflation & Bank Failures
Over the past year, many have asked about inflation and how The Federal Reserve (the Fed) will control it. Additional concerns, such as Silicon Vally Bank’s and Signature Bank’s recent failures, have recently surfaced. As a result, you may be wondering what is going on, if your bank is secure, or what you should do.
The short video above will help you better understand the current state of inflation and the banking crisis in our nation. It explores how inflation today differs from the double-digit inflation caused by the problematic monetary policy of the 1970s and the differences in the strategies implemented to fight it.
In addition, we examine the implications of Quantitative Easing (QE), a strategy the Fed started using in 2008 and accelerated in 2020. This “money printing” campaign has now grown to over $8.6 trillion, heavily contributing to inflation’s rise to a 40-year high. Unfortunately, the Fed has continued QE over the last few weeks to prop up struggling banks’ falling values on their Treasury debt (bonds) because of rising interest rates.
We realize these challenging times often lead to emotional decisions driven by fear. Take courage in 2 Timothy 1:7: “…for God gave us a spirit not of fear but of power and love and self-control.”
We at Envoy Financial believe that being a good steward of the resources God has entrusted us involves making sound decisions based on logic and reason rather than emotion. Therefore, we encourage you to watch this video. Then, click on the link below to schedule a meeting with one of our Stewardship Advisors, who can guide you through the maze of financial decisions in these uncertain times.
May God continue to bless you and your family.
In His Service,
Tim Newell, CFP, CKA, AIF
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Call (630) 613-9230 or schedule an online/phone meeting with one of Harvest’s licensed advisors.