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Blog | The Portfolio Doctor

The Portfolio Doctor

My blog provides valuable insights into Nobel Prize-winning financial strategies for investors. By utilizing decades of worldwide peer-reviewed capital markets research and analysis, I demonstrate how to build better investment portfolios with lower risks. I also examine common financial media misinformation and how investors can make better financial decisions.



Markets gifted us with another burst of volatility and headlines are looking apocalyptic again.  Some folks might think it's time to bail on markets for the summer, but I'll tell you why that thinking is a mistake.

First, let's peel back some layers to explore what's driving markets. (Want to discuss any concerns directly? Just click this  link  and let me know.) The latest selloff was largely driven by concerns about how the pace of Federal Reserve interest rate hikes could affect economic growth. The Fed's "hawkish" policy of rapidly rising interest rates to bring down inflation seems likely to take a chunk out of economic growth.

Is a recession or bear market on the way?  Those are risks we are prepared for.

While the Fed could manage to execute a "soft landing" and successfully lower inflation without triggering a downturn, its track record isn't so good. According to Schwab, 10 out of the last 13 rate-hike cycles resulted in a recession. Those aren't odds I'd want to take to Vegas.


Tags: stock market, stagflation, interest rates, market trends, U.S. economy

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