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The strength of consumer spending and household balance sheets has been a bright spot in an otherwise challenging market and economic environment. These factors have helped to keep the economy out of recession and have bolstered corporate earnings, but they have also kept inflation hotter than the Fed might otherwise like, resulting in higher interest rates. What should investors know about the state of consumer finances as market and economic uncertainty continues?

While war escalates in the Middle East, a political battle is also heating up in Washington. As of this writing, there is still no House speaker in Congress after Kevin McCarthy's exit and Steve Scalise's withdrawal over the past two weeks. While several Republican and House votes are scheduled to attempt to resolve this leadership vacuum, more political hurdles are on the horizon. This only complicates the market and economic environment for investors already navigating higher interest rates, Fed uncertainty, stock market volatility, and more. What can investors do to keep politics in perspective as the situation in Washington evolves?

As the final quarter of the year begins, markets are grappling with rising interest rates, reaccelerating inflation, and continued economic uncertainty. These factors led the S&P 500 to decline 3.3% (with reinvested dividends) during the third quarter, while the U.S. Aggregate bond index lost 3.2%. These issues echo the many concerns investors faced last year when inflation and higher rates resulted in a bear market. Other factors, including the narrowly averted government shutdown and cracks in China's economy, have also added to investor fears. Amid the seemingly constant stream of negative headlines, how can we prepare for the final months of the year?

The corporate earnings season for the first quarter is nearly complete, and investors appear focused on these earnings announcements even more than usual due to ongoing economic uncertainty amid high inflation, slower growth, and the banking crisis. In this context, corporate profitability can shine a spotlight on how companies, sectors, and the broader economy are truly faring in this environment. Further, focusing on earnings trends is a way to cut through the day-to-day noise of the stock market and news headlines.

The repercussions of inflation, Fed rate hikes, the ongoing banking crisis, and the approaching debt ceiling deadline are cascading throughout the financial system. One area directly impacted by these shocks is real estate across both the residential and commercial sectors. Commercial real estate (CRE), in particular, is highly dependent on regional and smaller banks, including those that have struggled or failed since early March. Some investors and economists are concerned about what this might mean for the broader economy in the coming months.

The federal debt limit is once again in the news as the country rapidly approaches a critical deadline on June 1. Investors are understandably nervous about Washington failing to reach an agreement, a possibility that both sides agree would be a self-inflicted catastrophe. While it's unclear how this will play out in the coming weeks, the fortunate news is that financial markets are mostly taking these events in stride. How can investors maintain the right perspective around political and fiscal uncertainty?

Monday morning, it was announced that the FDIC had taken over First Republic Bank and sold it to JPMorgan Chase. Eleven major banks had previously infused First Republic with $30 billion in deposits to stabilize the bank after the failures of Silicon Valley Bank, Signature Bank, and Credit Suisse. This process found new urgency over the past week when First Republic revealed that uninsured deposits at the bank fell $100 billion in the first quarter. So, this deal has been in the making for several days, with a few large banks bidding on First Republic's deposits and assets. With ongoing banking turmoil creating market and economic uncertainty, how can long-term investors navigate the months ahead?

The U.S. dollar has been in the headlines due to an anticipated pause in Fed policy and concerns over the currency's place in the global financial system. However, to borrow Mark Twain's famous line, reports of the dollar's death are greatly exaggerated. While the role of the dollar has declined by some measures over the past two decades, fears of the dollar's demise are not new among investors and economists. What does the dollar's role mean for investors going forward?

There is an old saying that happiness equals reality minus expectations, and this is particularly relevant when it comes to financial planning and investing during times of great uncertainty. For investors, having unrealistic short-term expectations of investment returns and financial outcomes, as many often do in the late stages of bull markets and during asset bubbles, can lead to discouragement. Instead, history shows that by maintaining perspective and focusing on aspects within their control, investors can set appropriate expectations and position themselves to achieve financial goals.

The banking crisis that began in the U.S. has now spread to Europe. Recent concerns over the solvency of Credit Suisse, Switzerland's second largest "global systemically important bank" (G-SIB), were due in no small part to the runs on U.S. banks. What made Credit Suisse vulnerable was that reputational and financial difficulties had plagued it over the past decade, including problems with its financial reporting, exposure to the failed companies Archegos and Greensill, and a criminal conviction over money laundering, to name a few. At the time of writing, UBS has agreed to buy Credit Suisse in a $3 billion deal brokered by regulators, hearkening back to JPMorgan's takeover of Bear Stearns in 2008. The situation is still evolving, and in the U.S., regulators continue to monitor banks for signs of contagion.