A bleeding stock market presents dilemmas and opportunities

This stock market is going through a correction unlike anything we've seen in over a decade.?Inflation is out of control, which is obviously the catalyst for the declines we're seeing on a daily basis.?

Whether the fed can get inflation back to normal is literally the trillion dollar question being asked by all market experts and analysts.?I've lost faith in the fed, as have many stock market experts, largely because it was terrible fed policy that led us to the problems we are experiencing right now.?

Making matters worse is that consumer sentiment is in the tank, as many of us are sick of $5 gas prices and also growing weary of watching the price of food and housing reach unsustainable levels.??I am not convinced that the federal reserve has the tools to deal with rising costs of food and energy, since these two variables are deeply linked to the war in Ukraine.?

The price of housing might be a variable that the fed can impact, but perhaps indirectly.?As the fed increases interest rates, this will certainly cause the cost of morgtgages to go up.?However, I am not convinced that higher interest rates will slow down the housing marketing.?

HOWEVER, if the fed pushes interest rates so high that it causes a recession (which I believe that it will), you could see a cool off in the housing market and perhaps a crash in real estate altogether.??So, fed actions are going to be watched closely to see how close they are willing to take the economy to the brink in order to manage inflation.?I'll be listening closely on Wednesday, as you should too.?

The bottom line is that we are in a messy situation and it's going to take time to unwrap it.?Feel free to visit BoyceWatkins.com to see some of the stocks I love in this environment, and also to join my Stock Market Investing class.?Remember, while there is a ton of economic pressure to go around, this is a WONDERFUL market for long-term investors.?

Be well and have an awesome day.?

Sincerely,

Dr Boyce Watkins

https://BoyceWatkins.com?