Recipes for Financial Success

Beth Genter
Schenley Capital


How do market volatility, inflation, and rising interest rates affect your financial outlook?
When the markets are turbulent and volatile for an extended time period, it is difficult to stay the course, although that is exactly the action we are advising our clients. Investors can no longer buy the four popular growth stocks and expect their portfolios to increase each day. We have invested our client’s money in a diverse group of very high-quality stocks with sizable dividends. These companies maintain a high cash flow, have steady revenues, are usually leaders in the global marketplace, and distribute a large quarterly dividend to their stockholders. These companies increase in value over a long period of time, which is why we hold these stocks in our portfolios.

As we heard from Jerome Powell, chair of the Federal Reserve Board, the Federal Reserve increased rates by .25 basis points. By doing so the Feed is attempting slow-down economic growth which will lead to slightly higher inflation. The intention of the Fed is to stabilize the economy, which in turn negatively impacts the stock market. We believe that the economy has slowed down to an appropriate level and that the Fed has accomplished its goal.