While the terms “bear market” and “recession” can apply simultaneously in times of a declining stock market and a slowing economy, each has a unique meaning and use.
Inflation is the loss of purchasing power over time, meaning that your money buys less than what it did in the past. Historically, inflation has averaged approximately 3% per year. However, we’re in an extremely high inflationary period right now—over the 12 months ended June 30, 2022, the Consumer Price Index for All Urban Consumers (CPI-U), a measure of inflation, increased 9.1%, the highest level since 1981.
We believe that the most effective way to mitigate the risk of unexpected events is through broad diversification and a flexible, systematic, and active investment process. Russia’s invasion of Ukraine is an important reminder that geopolitical risk is part of investing in global markets.
JLFranklin Wealth Planning
A full-service firm that focuses on individual clients whose financial lives we can impact the most.
