Wednesday, June 29, 2022

How is the stock market and inflation affecting consumers? – KPLC

Forex Market Stock Traders

Lake Charles, LA (KPLC) – Inflation is at a 40-year high. The stock market has been struggling to stay in the green. In today’s crucial meeting for the Federal Reserve, the nation’s central bank is debating raising the interest rate by ¾ of a percentage point, a move unseen since 1994.

Stocks were hammered again today on Wall Street, where the DOW was losing more than 150-points at the close of trading. Meanwhile, a key inflation reading shows a small glimmer of hope, revealing a slight slowdown in rising prices.

“Inflation is an insidious thing and usually you don’t feel it for years down the road,” financial advisor Sam Hebert said.

While many are feeling the sting of inflation with every purchase, when it comes to the stock market, Hebert said the repercussions could take years to surface. He said something he’s seeing right now is more people investing in things that are too volatile.

“Consider the stock market a snake. Cut the head and the tail off, too aggressive, too conservative, stay in the middle of the road,” Hebert said.

He said the history shows the market rebounding, but here’s the problem now:

“The feds are raising the rates which affect all our conservative investments, bonds. They’re purposely trying to slow the market which brings the stock market somewhat down,” Hebert said.

So, when it comes to big purchases or investments, Hebert said careful consideration of everything is key.

“Leasing, renting, buying a car, buying a house, spend more consideration on all of those things, and then get some more advice. If you would typically just make a decision yourself, maybe read a little bit more and talk to an expert in that field,” Hebert said.

He said continue to observe the trends and constant changes.

“The predicament we’re in two years ago wasn’t round. Gas was roughly $2 a gallon right,” Hebert said.

Triple A is reporting today’s national average is over $5 a gallon. If you look at grocery prices from 2 years ago, everything from a bag of chips to beauty products are seeing price hikes. So, how can consumers combat this? Here’s what Hebert advised:

“Never go in debt. Put up as much cash as you can and be able to live on way less than you’re living normally. Have the capacity to reduce and tighten,” Hebert said.

Hebert said to be very observant and see what new twists are going on in this decade.

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