Inflation, Ukraine, and the Drama of Investing
“We as humans have a tendency to over-rationalize the past, over-dramatize the present and under-estimate the future.”
In the last few months, the world has changed dramatically. As Rana Chauhan, Counsel’s Chief Investment Strategist, points out, we are caught between watching a senseless war and rallying our hearts and efforts for the people of Ukraine, while simultaneously, embracing for a new kind of normal as restrictions lift around the world.
From an economic standpoint, there are also different events at play. Central banks are raising interest rates, we see and feel higher inflation, and shortages in commodities are impacting the end investor.
Fear and uncertainty are normal in this environment, according to Rana, however, he encourages investors to put things into perspective. Two years ago, we worried about toilet paper wars. Fast-forward to today, we have toilet-paper o’plenty!
The reality is that inflation, wars and shortages have happened before. Markets react and stock prices fall, but Rana wants investors to remember that one quarter of craziness doesn’t make a year, and that lower interest rates don’t mean lower markets.
Our managers are focused on looking past the news headlines and the blips in the markets, which echoes Rana’s sentiment of taking a pause and thinking non-dramatically when it comes to investing (as this is not the Oscars).
We’re here for the long term, focused on helping you reach your financial goals, and your advisor has a process and framework in place to help you achieve this.
Learn more about Counsel Portfolio Services and IPC Portfolio Services investment offerings.
