Fool-Proof Investing Mindset to Weather the Market Storm

The latest March CPI report shows inflation increasing by 0.1%, up 5% from a year ago. In response, the Dow Jones Industrial index spiked 300 points as the Fed weighs its next policy move.

Investors are struggling to make sense of the latest data points on the economy.

Most see raising the rate as a way to tame high inflation. However, higher rates mean a possible recession with jobs being lost, less money in people's pockets, and an opportunity to take advantage of lower prices in the stock market.

Many are anxious about the future of the economy. With the collapse of SVB, ripple effects may affect the technology sector for years to come. So how do retail investors fight this uneasiness of the current market?

An Investment Plan

One way is to create an effective investment plan for your future. It is hard to know how the wind will blow with the Fed. The inflation numbers suggest that the Fed will raise rates by another 25 basis points, but it is hard to gauge with the current bank failures.

It would be best if you thought about where your money is located. It could be in CDs, bonds, stocks, your house, or cold cash. What type of liabilities may you hold, such as loans and mortgages?

To make an effective plan, you must first know where you are to navigate where you want to go effectively. Inflation has been eroding the value of the dollar.

That means we must save more and invest more money because what we could buy for a dollar a couple of years ago now costs $2 or $3.

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