The Woodward Financial Advisors Blog

Mind over Matter: Perspective for Investors on the US Debt Ceiling -- No doubt there has been plenty of uncertainty in the last few months to keep the 24-hour news channels busy. First, it was banking issues, and now the debt ceiling. It is our innate human nature to want to take action when things happen that feel out of our control. Sometimes a little perspective can help. Below is a good piece from Dimensional Fund Advisors on this topic that we thought you’d find helpful. Enjoy!

The holiday season is upon us! For me, this brings fond memories of family traditions centered around spending time together, eating good food, and exchanging gifts. This year, consider giving the gift of financial education to your children (or grandchildren) that will pay dividends (pun totally intended) as they grow.

Like many of you, last Thursday when I woke up, I read the news that Russia had invaded Ukraine. The destruction, disruptions, and consequences of this invasion are very real, especially for those with friends or family impacted in the region.

As a Financial Advisor, I cannot help but see the significant parallels between the consistent habits we need to maintain (or achieve) good health and those that help us be more successful in the pursuit of our various financial goals. We all seem to know what to do at a high level: save more, spend less, invest smartly, eat healthier foods, work out. What I find isn't always recognized is the relationship between the time and intensity of these actions.

The word “inflation” carries with it a negative connotation, and we’ve certainly been hearing about it more and more this year. After last year’s economic shocks and the shutting down of large swaths of the global economy, it’s not surprising to see prices for most goods and services rebounding.

These days, reading a newspaper feels like looking into some alternate reality where things make very little sense. When you take rising COVID-19 cases with a level of social unrest we haven’t seen for half a century, and top if off with shockingly bad economic news, you get a pretty universally ugly picture. Although we’ve never had an economic and public health crisis exactly like this, it doesn’t mean we can’t look to history to help us answer a few key questions.