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As challenging as international investing has been over the past several years, it has also never been more critical. While developed and emerging markets may be more susceptible to economic shocks, geopolitical instability, and factors such as the pandemic, this is also why they may have higher expected returns in the long run. Investing across geographies, especially when valuations are attractive, is a vital way to improve diversification as the global economy recovers from recent energy and inflationary shocks. How can investors maintain perspective around international investments today?

Investors and economists have breathed a sigh of relief as new inflation data suggest that price pressures are easing. While the prices of everyday goods are still significantly higher than a year ago, some of the underlying trends are beginning to reverse. This is largely in line with our Inflation Inflection note earlier this year that inflation would likely start to ease come the summer months. Stocks have rallied as markets price in hopes the Fed will pivot soon. The S&P 500 and the Nasdaq have now gained 16.7% and 22.6%, respectively, since the middle of June when oil prices peaked and the Fed began accelerating its rate hikes to fight inflation. But we’re not chasing the rally. Why? We view market expectations for a dovish pivot as premature and that a pivot will come later as the Fed is now responding to pressure to tame inflation.

As the economy slows, some investors are worried about the possibility of a recession and the long-term consequences of ever-growing government debt. These concerns are timely due to recent economic data and policy decisions, including the Inflation Reduction Act making its way through Congress.

Last week's report on the country's Gross Domestic Product for the second quarter confirmed that the economy shrank in the year's first half, a fact that some investors and economists had already suspected. Broad-based inflation, rising energy prices, higher interest rates, and a strong dollar dragged on growth for the second consecutive quarter.

As we enter the second half of the year, investors continue to grapple with inflation, higher interest rates, the Fed, and the prospect of a recession. If historical bear markets are any indication, investors' decisions during this period will have long-lasting effects on their portfolios.

We are set for the release of a ton of economic and business data this week, U.S. consumer confidence, U.S. Q2 GDP, Euro Area inflation & Q2 GDP, U.S. personal consumption expenditures, consumer spending, and a slew of major corporate Q2 earnings reports such as Apple, Alphabet, Amazon, and Microsoft. However, the spotlight will be on The Fed's interest rate decision and press conference on Wednesday.

We've been writing for some time now about how inflation was going to ramp higher and faster than most were anticipating as the economy reaccelerated out of the pandemic-induced recession. It seems that many market participants, including the Federal Reserve, are playing catch-up.

Last week, one of the largest single value destruction events occurred in market history. As a result, many investors might be asking why, or even how, did this happen? Investors' personal balance sheets and investment strategies have become ever-more concentrated at the broad market index level as well as through their equity compensation through their company.

In this episode, we discussed how to balance finances in a relationship, how to communicate about money, when it is best to hire a financial planner, and general tips and tricks in how to navigate what is usually the most contentious topic within a relationship - finances.

In this episode, we discuss long-term wealth building, financial literacy, financial freedom, and even how cryptocurrency fits within the construct of a wealth plan and investment strategy. We also discussed my journey in leaving the comfort of employment to start my own successful wealth management business.