Obsidian Market Update 6/17/2022
This week we’ll be bringing you some more thoughts on inflation, the pros of having a photography habit, and a How We Help on estate planning. Let’s get into it!
The way people feel about inflation depends a lot on who they are and what their financial situation looks like. Inflation has a lot of effects, some of which might be beneficial to some people.
For instance, inflation is bad for those in lower income levels, especially when wages don’t keep up with the cost of living.
Owning investment properties, on the other hand, might mean benefiting from inflation. With the rising value of homes and properties, more people are buying real estate to diversify their wealth–call us if this interests you. Basically, industries where cost can be passed along to consumers without hurting the business, like real estate, oil, and credit card companies, do just fine with or even benefit with inflation. Keeping your portfolio balanced during times of inflation allows us to mitigate the effects on any single industry.
Five ways you can manage your investments during inflation include:
- Real Estate: We help our clients analyze real estate to purchase,
- Value stocks: Value stocks tend to do better than growth stocks during inflation periods. We have already increased allocations of these in our clients’ portfolios.
- Commodities: We have already increased allocations here, too. Commodities include things like gold, raw materials, and natural resources, which generally see demand in uncertain times.
- Treasury Inflation Protected Securities (TIPS): A substantial amount of our managed portfolio’s fixed income is now in TIPS, which includes periodic inflation adjustments that fixed-rate bonds lack.
- I-Bonds: These are good because they will keep pace with inflation and offer a nearly guaranteed return, but an individual can only purchase $10,000 worth per year.
At the end of the day, inflation isn’t all bad–it just depends on where your finances are and the context you’re in. If there’s anything we can do to help you feel secure during this period of time, give us a call.
If you’re looking for a hobby to occupy some time or help you meet new people, we’ve heard that photography is an art with a lot of benefits. Like these, for instance:
- You’ll start to notice the small details more than you ever had before, as you search for the perfect photo composition.
- You will preserve memories and moments in time for yourself and for those who come after you. They’ll also give you fun prompts for telling stories to your loved ones.
- Photography is creative, which is a side of ourselves we don’t always give enough time to. Doing creative work will let you use a whole other side of your brain and can really enrich your life.
- Photography gives you a chance to express yourself and share what you think is important, even if it’s just with your family or a few Facebook friends. What we choose to take photos of says a lot about what we value.
- Cameras are cool. If you’re someone who enjoys researching and carefully selecting equipment, this is the hobby for you. There are a lot of camera bodies and lenses out there and they’re all a little different, so you’ll have lots of ways to experiment and challenge yourself.
That’s it for us this week. Enjoy a nice iced tea in the shade, and we’ll be back in your inboxes next Friday.
How We Help
We love to work with families on estate planning, which often means making adjustments to the plans. Sometimes an individual’s healthcare needs change and they require additional help. We coordinate with family members and advisors to make a transition to a more secure family situation. We suggest updating your estate planning documents every couple of years. If you haven’t visited your plan in some time, 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.