MINT HILL, NC – How does this fairy tale relate to our current economy? Easy…we have the mild baby bear, the moderate momma bear, and the long-lasting papa bear. By the end of 2022 it is believed that the market environment outlook will reveal itself more clearly – good, bad, or somewhere in between. Below are explanations for each scenario:
The mild bear: Interest rates do not have to go much higher, inflation recedes quite quickly in response to rate rises, and economic growth remains generally solid.
The moderate bear: We could experience a mild recession, where interest rate rises are soon sufficient to gradually slow the economy and tame inflation from current elevated levels. The expectation is for a few quarters of slowing growth, with inflation gradually inching down, before ultimately seeing early signs of a recovery.
The longer lasting bear: An environment in which uncertainty continues to prevail, where the Federal Reserve is unable to gain control of inflation, and it remains unclear how high-interest rates will need to go in order to reinstate price stability. In this environment, the market continues to fluctuate, and volatility remains prevalent.
Is your financial plan strong enough to withstand any situation that’s thrown it’s way?
Let us help you find your clarity of purpose!
This article was released by T. Rowe Price for use by your local Cambridge Investment Research Financial Advisor.
To discuss further, please contact me at (704) 817-4480 Option 2, or by email at email@example.com.