A question I frequently get asked by clients when they are investing cash is whether the funds should be invested in a lump sum or averaged into the market over time?
The answer is yes.
Should You Be Worried About Inflation?
According to the US Bureau of Labor Statistics, US consumer prices for the year ending in June posted the largest annual increase since the recovery from the financial crisis started back in August 2008. Austin home prices are up 37.5% in the year ending in May, according to Redfin. Similarly, gasoline, lumber, and used cars are all more expensive than they were a year ago. Should we be worried?
Earlier this week, I shared an article on some social media channels by DFA’s Weston Wellington titled ‘Everything Screams Inflation.’ How to Interpret the Headlines. Wellington does a great job of illustrating how headlines don’t always (or even often) do a good job of predicting how markets may behave. But he didn’t address the question of if we should be worried about inflation.
I personally am concerned…
Q2 2021 Market Review
World economies have done the Texas Two Step (one step forward and two steps back) for much of the year as global stock and bond markets were broadly higher in Q2, supported by the accelerating roll-out of Covid-19 vaccines. Meanwhile, cryptocurrencies crashed, oil soared, home prices sizzled, and the G7 spendthrifts, prompted by President Biden, sought to raise corporate tax rates across the globe.