As all of you know, I usually write weekly blog posts on the Dattilio & Ash Capital Management web site. These blog posts are usually about 3- or 4-paragraphs long and reflect my views on current investment topics including investment strategy, retirement planning, economic events, etc.
However, this week I read a thoughtful market commentary from Charles Schwab & Co., Inc. titled “The Fed’s Next Move: Ukraine Changes the Picture” that I agreed with and felt it would be appropriate to share it this week.
The article highlights the patience shown by the Fed to head off inflation with a slow and methodical tightening of monetary policy, only to have the Ukraine-Russia conflict complicate matters with a shock to the economic outlook. War in the Ukraine has caused a surge in some commodity prices that potentially could slow growth and financial and other sanctions could disrupt financial markets. The article ends with a familiar refrain that sounds like something I wrote: “Despite the uncertainties in the outlook for the economy and Fed policy, we believe investors should continue to hew to their “best-laid plans”. Those with a long-term strategy that suits their risk tolerance and capacity should stick with their plans”.