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Should Inflation Affect Your Investment Moves?
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As you know, inflation heated up in 2021, following years of pretty stable – and low – numbers. And now, early in 2022, we’re still seeing elevated prices. As a consumer, you may need to adjust your activities somewhat, but as an investor, how should you respond to inflation?
First, it helps to know the causes of this recent inflationary spike. Essentially, it’s a case of basic economics – strong demand for goods meeting inadequate supply, caused by material and labor shortages, along with shipping and delivery logjams. In other words, too many dollars chasing too few goods. Once the supply chain issues begin to ease and consumer spending moves from goods to services as the COVID-19 pandemic wanes, it’s likely that inflation will moderate, but it may still stay above pre-pandemic levels throughout 2022.
Given this outlook, you may want to review your investment portfolio. First, consider stocks. Generally speaking, stocks can do well in inflationary periods because companies’ revenues and earnings may increase along with inflation. But some sectors of the stock market typically do better than others during inflationary times. Companies that can pass along higher costs to consumers due to strong demand for their goods – such as firms that produce building materials or supply steel or other commodities to other businesses – can do well. Conversely, companies that sell nonessential goods and services, such as appliances, athletic apparel and entertainment, may struggle more when prices are rising.
Of course, it’s still a good idea to own a variety of stocks from various industries because it can help reduce the impact of market volatility on any one sector. And to help counteract the effects of rising prices, you might also consider investing in companies that have a long track record of paying and raising stock dividends. (Keep in mind, though, that these companies are not obligated to pay dividends and can reduce or discontinue them at any time.)
Apart from stocks, how can inflation affect other types of investments? Think about bonds. When you invest in a bond, you receive regular interest payments until the bond matures. But these payments stay the same, so, over time, rising inflation can eat into your bond’s future income, which may also cause the price of your bond to drop – a concern if you decide to sell the bond before it matures. The impact of inflation is especially sharp on the price of longer-term bonds because of the cumulative loss of purchasing power.
However, Treasury Inflation-Protected Securities (TIPS) can provide some protection against inflation. The face value, or principal amount, of each TIPS is $1,000, but this principal is adjusted based on changes in the U.S. Consumer Price Index. So, during periods of inflation, your principal will increase, also increasing your interest payments. When inflation drops, though, your principal and interest payments will decrease, but you’ll never receive less than the original principal value when the TIPS mature. Talk to your financial advisor to determine if TIPS may be appropriate for you.
Ultimately, inflation may indeed be something to consider when managing your investments. But other factors – especially your risk tolerance, time horizon and long-term goals – should still be the driving force behind your investment decisions. A solid investment strategy can serve you well, regardless of whether prices move up or down
Mat Tiahrt, Financial Advisor, Edward Jones, 4231 North Woods Trail, Ste C, Hampstead, MD 21074 - 410-239-0859 - Mat.Tiahrt@edwardjones.com - www.edwardjones.com
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC
Maryland Real Estate Professionals Real Estate Outlook
Central Maryland Housewarming Extravaganza
Welcoming You To Your New Central Maryland Home
Congratulations on your decision to purchase a new home! 🏠 There’s something magical about stepping across the threshold into a space that’s truly yours. The scent of fresh paint, the echo of footsteps on hardwood floors, and the promise of countless memories waiting to be made—it’s a feeling like no other. And what better way to celebrate this milestone than with a Free housewarming party?
That's correct, when you work with a Maryland Real Estate Professionals team member and one of our preferred lenders, we will provide you with the housewarming gift of a housewarming party!
Why a Housewarming Party?
A housewarming party isn’t just about showing off your stylish decor (though that’s definitely part of it!). It’s a chance to open your doors wide and invite friends, family, and neighbors to share in your joy. Here in Central Maryland, we know how to throw a memorable gathering—one that combines warmth, hospitality, and a dash of local flair.
A Housewarming Party Is The Perfect Venue
When you work with a Maryland Real Estate Professional Team Member and on of preferred lenders to purchase your home, we will give you up to $500 towards a housewarming party! Now isn't that an amazing housewarming gift!
After we help you purchase your home, you choose a date that suits your schedule and gives you enough time to settle into your new abode. Maybe you’ve hung up your favorite artwork, arranged the furniture just so, and found the perfect spot for your morning coffee. Now, let’s set the scene for your housewarming party. Whether you have a cozy townhouse in Annapolis, a chic loft in Baltimore, or a sprawling estate in the Frederick County countryside, your home will be the star of the show.
Invitations For This Amazing Housewarming Gift That Spark Excitement
If you provide the Maryland Real Estate Professional team member your guest list, we will send out digital invitations to your guests. HAKUNA MATATA - We want to keep it hassle-free by using platforms that allow you to save invitations as images on your phone. A quick text message with all the details will have your friends marking their calendars. Remember to choose a range of time (say, 3-6pm) rather than a strict starting time. An open-house style party lets guests come and go as they please, without worrying about being late.
Delicious Bites and Sips
Now, let’s talk about the heart of any gathering—the food! Maryland Real Estate Professionals and our preferred lender will provide you with a housewarming gift, so that you will be able to purchase food for the party! For a housewarming party, opt for dishes that are easy to prepare ahead of time. Think bite-sized nibbles, colorful charcuterie boards, and refreshing drinks. Here are some ideas:
- Charcuterie Board: Arrange an assortment of cheeses, cured meats, olives, and fruits. Add some crusty bread and gourmet crackers for a delightful spread.
- Welcome Home Cocktails: Create a signature drink for your party. How about a refreshing Maryland mule with local ginger beer and a splash of bourbon?
- Sweet Treats: Offer a selection of cookies, brownies, or mini cupcakes. Bonus points if they’re homemade!
Maryland Real Estate Professionals Housewarming Gifts That Wow
As guests arrive, greet them with a warm smile and perhaps a small token of appreciation. Here are some thoughtful housewarming gifts ideas:
- Personalized Cutting Board: Engrave it with their new address or a sweet message.
- Custom Home Map: Capture the location of their new home in a beautiful print.
- Indoor Plants: A touch of greenery adds life to any space.
- Welcome Home Sign: A charming addition to their entryway.
- Cookbook: Inspire their culinary adventures in the new kitchen.
Our friends over at DC Laser can help you come up with some amazing housewarming gifts! Just go to www.dclsr.com
Central Maryland Vibes
Maryland Real Estate Professionals has Central Maryand Covered! We know that Central Maryland is a place of contrasts—where historic meets modern, and cityscapes blend with natural beauty. Take inspiration from the region as you decorate your home. Incorporate nautical elements from Annapolis, embrace the industrial chic of Baltimore, or infuse your space with the tranquility of the Chesapeake Bay of the vast countryside of Caroll, Frederick and Washington Counties. Central Maryland is a beautiful place to work, live and play!
Memories in the Making With The Maryland Real Estate Professionals Team!
As the sun sets and the laughter echoes through your rooms, remember that this housewarming party is more than just an event—it’s the beginning of a chapter. A chapter filled with shared meals, cozy movie nights, and impromptu gatherings on the patio. So raise your glass, toast to new beginnings, pass out those housewarming gifts and welcome everyone to your Central Maryland haven.
Whether you’re hosting or attending, a housewarming party is a beautiful way to celebrate the journey of finding and creating a home. Cheers to you and your fellow Marylanders! 🥂🏡 Remember when you work with Maryland Real Estate Professionals, you are working with true professionals, who will look out for your best interest when you are buying your dream home! And don't forget that if you are looking for amazing ideas for housewarming gifts, you want to reach out to DC Laser. They are creative and have wonderful housewarming gifts!
