We’ve seen markets worldwide tumbling over the last few weeks, as investors dumped government bonds, oil prices slipped and cryptocurrencies crashed. The S&P 500, which has fallen 10 out of the last 11 weeks, has declined more than 21% since January. The Fed — in a move to fight inflation without tipping the economy into a recession — raised interest rates by 0.75 percentage points last week, which was the largest rate hike in 28 years. Such a sharp increase is aimed directly at taming the runaway growth in prices that Americans are facing. And of course many economists are predicting that we’ll be in a recession by 2024. Some say it will come sooner. Others believe we’re already in it now.
But what does all this mean? And other than “take a breath,” what can we actually do? On this week’s HerMoney Podcast, we sit down with Jeff Sommer, who writes the “Strategies,” column for the New York Times, to discuss what we can actually control right now, and what nervous investors should be doing. How can we stay calm and make decisions that won’t hurt us in the long run? How can we prepare for another recession if it’s coming, and how can we manage inflation? Jeff also weighs in on the right moves to make if you’re just getting started with your investing journey, and how bear market can be a good time to invest.
In Mailbag, we hear from a teacher wondering how best to invest her pension. And in Thrive, are travel rewards credit cards really worth having?
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