The devastating war in Ukraine is heart-wrenching. Our thoughts remain with the Ukrainian people, the friends and families of those affected, and the people working to support those in need.
It is a time of uncertainty, and more volatility is expected. We will continue to be nimble and present as events unfold.
What we can expect.
Much is being written about the rise in inflation. Shortages brought on by the pandemic are now layered with the onset of the war in Ukraine. The world may have entered a new era of a splintered supply chain, where many countries will need to refigure the methods and delivery of energy and supplies that support their economies. Energy prices are spiking, and it will take time for investment in new energy supplies to take place.
Conditions will be worse for Europe, as they are more dependent on Russian oil and natural gas. There is discussion on where and how the replacement supply will come, and if there will be European Union financial support for families to offset this hardship.
The U.S. Economy is currently strong, in part due to a tight labor market where hiring demand is high and increased pent-up demand as Omicron numbers declined. It appears that the Fed will raise interest rates .25% vs. .5% to help manage inflation. At the moment, it looks like a recession in the U.S. is a lower probability.
Market uncertainty has led to a selloff in stocks. This volatility could provide an opportunity over the longer term. While we are in uncertain times, there are many historical examples of geopolitical crisis’s that show us the importance of staying focused by not making short-term decisions and on your long-term goals.
A note about cyber security. Be careful with your information.
There is an elevated risk of Russia increasing its cyberattack network, so be careful with the transfer of your private data. If there is a need for an extra distribution, please call us. Any email requests will be confirmed with a call to you.
Private information should only be emailed in a secure or protected email. I have two ways to ensure documents are emailed or uploaded securely and encrypted. Please reach out if you need to send me information, and I will promptly relay with a secure email link.
IRA distributions can be tax efficient, while directing funds to charitable organizations.
For those of you that need to take a required minimum distribution (RMD) and are age 70-1/2 or older, you have the availability to do a Qualified Charitable Distribution (QCD) directly from your traditional IRA to the charitable organization. This allows you to deduct the RMD on your tax return, thus lowering your adjusted gross income and your taxes.
In response to the war, Carlton & Company has donated to several organizations providing supplies, meals, medical care and humanitarian assistance to the Ukrainian people, and those on the frontlines. A commitment to being mindful to our local and global community remains paramount within our company.
We are focused on supporting clients through individual meetings to discuss concerns and planning. We welcome and encourage conversation. If you would like to connect, please reach out.
The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. No investment strategy can guarantee a profit or protect against loss.