As the saying goes, hindsight is 20/20. Thus, and in keeping with the same, one will only know if inflation is permanent or transitory after the fact or perhaps when it is too late, as often is the case in the world of investing. With that in mind, I suggest that one should view inflation through a different lens, for what it is – likely short-term noise.
Not short-term noise in the sense of its importance, but instead short-term noise in terms of media attention / coverage – here today and gone tomorrow. After all, there is always noise to contend with when planning for one’s future, working towards one’s financial objectives and managing wealth – Covid 19, the Delta variant, vaccinations, the southern border, mid-term elections and Afghanistan to name a few. Inflation is just one of the many issues we are bombarded with on a daily basis.
Yes, there is never a shortage of noise.
However, despite the noise (topic, frequency or perceived importance of the same), there is one undeniable truth – clients must continue to plan for a comfortable retirement, the funding of a child’s education, address day to living expenses or perhaps assist with the care of an elderly parent for example. To that end, and in the face of any source of uncertainty, one should first choose to reflect – reminding oneself as to what is truly important personally, professionally and financially. After doing so, one should strive to ensure that thoughts and deeds are aligned.
After all, there is no investment, “app” or digital service that will ensure the achievement of one objective in the face of inflation or any other source of uncertainty. Instead, consistent, disciplined and repeatable behavior is your most trusted ally. That said, review your anticipated expenditures as supply chain constraints have resulted in elevated prices – especially as it pertains to “big ticket” items such as automobiles, home furnishings, home electronics, home appliances, etc. Waiting to purchase such items may prove prudent as supply chains constraints ease and pricing pressures abate.
In terms of “investing,” excessive media coverage, as is the case with many topics, will likely result in market volatility. Market volatility, in turn, presenting opportunities for the individuals who have reflected as to what is truly important personally, professionally and financially and has demonstrated consistent, disciplined and repeatable behavior that is aligned with planning for a comfortable retirement or funding a child’s education.
Seek advice from an academically accomplished, highly credential and experienced financial professional – reviewing objectives, resources and strategies employed to ensure the same are fundamentally aligned with desired outcomes over the short, intermediate and long term.
Lastly, remind yourself that what appears to be most troublesome and uncertain to you is likely to simply be noise, the importance of which will quickly fade – being replaced with something equally as troublesome and uncertain but all-together different. The professionals of ICG next have combined experience exceeding 100 years – having successfully led clients & families, time and time again, through times of uncertainty and concern.
ICG next is an innovative, industry-leading financial advisory firm located in Wall Township, NJ, serving multigenerational families as they plan for what’s next. Our team of knowledgeable and caring advisors is changing the way our clients think about and view financial services.
To contact ICG next, please call (732) 359-3838.
The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.