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  • Writer's pictureNate Baim, MBA, CFP®

Inflation & Volatility

Are you concerned about inflation?

This is a question I'm often getting, and inflation is dominating the discourse right now. It's driving the headlines being talked about hourly and wreaking havoc on budgets. We're paying more at the pump, for food, housing, and just about everything else. But for long-term investors, short-term inflation isn't the biggest risk to their financial plans. The biggest risk is actually volatility.

Volatile markets are equal parts stressful and suspenseful. And the volatility right now is being fueled by the Federal Reserve's efforts to balance bringing down inflation with minimizing the impact of a potential recession. The Fed is raising the key short-term interest rates to slow economic growth. This makes money more expensive, whi