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For investors, it may feel like déjà vu all over again as inflation and the Fed dominate market headlines on a day-to-day basis. After all, driving the numerous market swings last year were the ever-changing expectations around the Fed - both when investors believed the Fed was doing too little, and when they thought the Fed was tightening too much. With markets once again concerned about the direction of the Fed, what do investors need to know about how the story is evolving?

Layoff announcements are ramping up as companies adjust to slowing sales and profitability. So far, significant job cuts have been concentrated in technology and consumer-related industries due to overhiring during the pandemic recovery when demand was extreme. Whether this spills into the broader economy is the subject of debate among investors and economists. With markets already expecting a mild recession in 2023, how should long-term investors maintain perspective on this topic over the next year?

Last year, the bear market in bonds shocked markets and raised questions about the role of fixed-income securities in portfolios. The primary driver of this was, until 2021, inflation had been steadily falling for 40 years, pushing interest rates lower and bond prices higher. This period supported the idea that bonds act as a stable foundation for portfolios, counterbalancing the price swings in stocks and other riskier assets. Naturally, with both stocks and bonds falling last year, many investors may wonder if they need to rethink the role of fixed income in their portfolios.

Over the past week, there has been nonstop news coverage of the federal government hitting the $31.4 trillion borrowing limit known as the debt ceiling. Once again, Washington drama is on center stage as the Treasury Department enacts "extraordinary measures" to not default on its obligations. Although this has become a regular occurrence, many investors are still understandably nervous. While it's unclear how this will play out politically before the estimated June 5 deadline, the fortunate news is that financial markets have taken these events in stride. How can investors maintain perspective around the fiscal uncertainty despite the political theater?