How to Stay Financially Stable When the World Might Be Falling Apart

Unfortunately, rising markets aren’t necessarily great indicators of a healthy economy.

After Jerome H. Powell, the Federal Reserve chair, suggested this month that the Fed would cut interest rates, the stock market hit new highs.

That buoyed investments, but signs of slowing economic growth persisted, as did the fear that it may be too late to stave off another recession.

And though traders have been doing well, lower-than-expected wage growth, underperforming bond yields, trade wars, climate change’s effect on resource scarcity, Brexit and geopolitical tensions are leaving long-term investors still wondering: What’s the best way to stay financially stable?

Our quarterly report on investing provides some answers.

It includes coverage of some successful mutual funds and exchange-traded funds. It also highlights intellectual pitfalls that might hinder investors’ judgments, and how best to avoid them. As Conrad de Aenlle wrote in this special report, “The market has been largely unperturbed by the persistent economic weakness because each bad piece of data is taken as confirmation that the Fed will ease.”

Article source: https://www.nytimes.com/2019/07/15/your-money/how-financially-stable-investing.html?emc=rss&partner=rss