“You want to lean more toward dividends because they have a little bit of inflation protection, a lot more than bonds in your portfolio,” she said.
Guenther also noted that the bond market has undergone a dramatic move, reflecting major changes in North American interest rates — far more than what he said about the Federal Reserve. That, with supply chain disruptions from the pandemic and massive lockdowns in Shanghai shutting down plants and 26 million people in lockdown for two weeks as well as wars in Ukraine and hopes that Europe may slip into recession sometime this year Will, even as many of its residents take in refugees, are having an impact.
“My it’s a natural way to go from a high growth environment to a slow growth environment,” she said. “So, interest rates probably won’t rise as much as we thought, especially in Europe.
“In North America, things have never been better. We have full employment, but we have high interest rates and a little bit of inflation. We have recovered from the pandemic in two years, when it took us to recover from the 2007-2008 problem.” Took 10 years.
“So, I think, from a financial advisor’s perspective, we have to make sure that we help our clients not to be anchored on current events, but to think about things over the long term so that we can keep them invested because We don’t want them out of the market. We want them to keep investing in a way that keeps their assets stable, until we get to the next stage of market growth.