HOW TO INVEST NOW
Kiplinger's Personal Finance|July 2022
Much hinges on whether the Fed can guide the economy to a soft landing.
ANNE KATES SMITH
HOW TO INVEST NOW

Like any good serial, the financial markets have set up a doozy of a cliff-hanger as investors look toward the second half of 2022. Will inflation moderate or continue to blaze, consuming more of our spending power and investment returns in the process? Will the Federal Reserve manage the high-wire act of raising interest rates just the right amount at just the right pace to dampen inflation without tipping the economy into recession? That's a balancing act it has pulled off in only three of the past 11 extended rate-hiking cycles, according to Deutsche Bank-a dismal success rate of less than one-third. Will the downward trend in financial markets spiral into a widespread bear market in stocks and more carnage in bonds? Or is a snapback in order if the bad news-including about the invasion of Ukraine and the course of COVID-starts to abate?

We wish we could tell you how the story ends. What we can say is that gains will likely come stock by stock, rather than by monolithic market moves, and they will be accompanied by a lot of volatility—in both directions— between now and year-end. Investors should remain agile and alert to opportunities, with enough cash on hand to take advantage of them—as much as 5% to 8% of your portfolio or even more, says Jared Woodard, head of the research investment committee at BofA Securities. “We think that in the second half, risks and rewards are pretty balanced,” says Woodard. “In other words, there are as many ways to see an upside to stocks as to see downsides.” A focus on firms that are resilient and cash rich might be a better bet than going all-in on any particular style, sector or market value.

Denne historien er fra July 2022-utgaven av Kiplinger's Personal Finance.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra July 2022-utgaven av Kiplinger's Personal Finance.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA KIPLINGER'S PERSONAL FINANCESe alt
FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

time-read
2 mins  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

time-read
2 mins  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

time-read
5 mins  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

time-read
3 mins  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

time-read
6 mins  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

time-read
2 mins  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

time-read
6 mins  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

time-read
10+ mins  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

time-read
8 mins  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

time-read
4 mins  |
December 2024