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.

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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 mmiller@fulcrumwealth.com.