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Obsidian Planning
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Obsidian Market Update 11/18/2022

Hi friends!

 

This week, we’ll explore the effect of inflation on the stock market. Then, with holiday leftovers season upon us, we’ve got great tips for how to make your food storage last longer.

 

Over the past week, inflation numbers went down a little and the market went way up. As we know, this is why we stay disciplined and invested over the long term. History does not show a clear connection between inflation and stock market performance, so our best bet is to keep an eye on more specific, immediate data.

 

What we do know, and what has been made clear over the past several months, is that inflation can create volatility in the market. Expectations of a company’s future earnings are largely responsible for stock prices and stock market returns. Inflation can cause higher prices for materials, inventory, and transportation can impact earnings and cause stock prices to fluctuate.

 

Last week, investors saw several very volatile sessions in the stock market. Last Thursday, the Dow Jones Industrial Average (DJIA) was up by over 1200 points, which was its biggest one-day rally in two years. Markets reacted to the latest economic data, which showed that inflation actually cooled by just a bit in October. This led investors to believe that inflation may have peaked. That said, inflation remains historically very high and just the thought that inflation may have leveled off at still very high levels, creating a buying frenzy.

 

Speaking of inflation, it’s making food more expensive. . So to make the most of your food budget, here are some tips and products for making your leftovers last longer:

 

  • A vacuum sealer is great because it keeps your food away from that pesky chemical that makes it degrade more quickly: oxygen. Who knew? Talk about best friend/worst enemy.
  • Good ol’ Rubbermaid containers. They’re reusable, machine washable, and stack nicely in the fridge. What’s not to love? We can’t vacuum seal soup, but we can put it in a Rubbermaid.
  • Glass containers are also great. If you get a high enough quality glass, you can put it in the freezer, the fridge, the microwave, or even the oven (but don’t put cold glass in the oven no matter how nice it is). Plus, glass food storage is just pretty.
  • Do NOT store produce in produce bags. They trap condensation and ethylene, which makes produce rot. Potatoes should be in a paper bag inside an airtight container and out of the light.
  • Poultry is better stored wrapped in paper towels than in plastic. Just keep it at the bottom of the fridge to prevent the spread of e. Coli and other harmful bacteria from other food.

 

That’s it for us this week! Let us know your favorite food storage tips, and we’ll be back in your inboxes next Friday.

 

How We Help

With the market being down, it’s a great time to talk about Roth conversions, especially if you have a lower income this year for any reason. With a Roth conversion, you have to have money in an outside account so you can pay the taxes, but the good news is that with these conversions you can lock in tax-free growth for the rest of your life. If this is something that interests you, give us a call!

 

Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Securities are offered through Triad Advisors, member ​FINRA/SIPC.​ Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.

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