There’s a lot of talk right now about the chances of a recession due to rising interest rates slowing down the economy.
You may think economic news can tell us where investment markets will go tomorrow, but actually, markets are already one step ahead.
Markets Are Forward-looking: Markets are like a big, fast machine that take in all the latest news and guess about what might happen—including any worry about recessions—and use that to set prices right away.
Why Predicting Falls Short: Trying to guess if a recession will happen and adjusting your investments based on that can be risky. Markets have already done the guessing for you and the prices you see today are their best guesses.
Sticking to Your Plan Pays Off: For most of us, the smarter move is to stay focused on our long-term goals. Keep to your investment plan, which should be built to weather ups and downs over time.
Remember, it’s about the long game. Trust your strategy, diversify your investments, and let the market do its thing.