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The Week in Review
• US stocks were volatile this week, especially after Russia’s invasion of Ukraine. Political statements, economic data points, natural disasters, or global unrest can often have some sort of effect on the stock market because they affect market sentiment, which plays an important role in investment valuations. Here’s how market sentiment is used as a tool for market analysis.
• While Russia and Ukraine have been grabbing most of the attention, investors are still unnerved by rising inflation in the US and abroad. Wall Street largely expects the central bank to enact the first of its rate hikes, but a lack of information surrounding the pace of these hikes is causing jitters.
• Initial jobless claims hit a 52-year low. The Department of Labor’s number came in at 232,000 — representing a decline of 17,000 from the previous week. It means fewer Americans are now collecting unemployment than at any point since 1970.
For more economic news and how it affects your money, visit the SoFi app.
Should You Pull Your Money Out of the Stock Market?
When the stock market drops, some investors get antsy. Watching the market decline in real-time can be stressful. It may even seem like invested money is heading toward zero.
During drops in the market, it can be easy for investors to think that their hard-earned money is going up in smoke. A worried investor might think that it’s better to lose a little now than to forfeit more later by sticking with the markets.
But, is it always a good idea to pull money out of the stock market when there’s a drop? There’s no one-size-fits-all answer for investors. Here’s an overview of factors investors might think about when deciding whether to keep money in the stock market.
This Week’s Top Stories
Following Russia’s invasion of Ukraine, US consumers could face higher gasoline prices along with higher borrowing costs for mortgages, car loans, and credit cards.
Russia is one of the world’s largest producers of oil, so any disruption of exports could send global prices higher, causing more pain at the pump. Natural gas could also be impacted, raising heating and electricity costs. Generally speaking the invasion could heat up inflation even further, and the Fed may move towards rate hikes at a faster pace — making debt service more expensive.
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We are now squarely in the next episode of this economic cycle. This is a time when investors earn their chops.
Liz knows listing off all 99 of our problems doesn’t sound uplifting, but it might help to put them in bite-size pieces so the view isn’t so overwhelmingly negative. This week, SoFi’s Head of Investment Strategy looks at the new obstacles in our path, reviews the existing ones, and makes sense of how we got here.
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Home values rose significantly in 2021, providing many sellers with a windfall of cash. They may not be prepared for the major capital gains tax burden.
Tax filing season has arrived, and for many longtime homeowners who took advantage of the hot housing market, a big check is owed to the government. The thresholds that allow for capital gains write-offs haven’t increased since 1997, meaning they haven’t kept pace with rising home values. There are steps property owners can take to reduce their burden.
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Deep Dives from SoFi Learn
Buying and selling stocks based on emotions or gut reactions to temporary volatility can derail your investment plan, potentially setting you back.
It’s human nature to be concerned, or to feel panic at times. But sometimes, the best investment advice is not to give in to your feelings. Here’s what you need to know when the market is down.
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Financial therapy is a relatively new field that combines the emotional support of a psychologist with the money mindset of a financial planner.
A financial therapist is a financial planner and mental health professional all wrapped into one. Read on to learn if you might benefit from this type of professional counseling, and, if so, how to find a financial therapist that is the right fit for you.
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Picking out the right life insurance policy can seem complicated, but in truth, the number of choices just reflects how easy it is to get the right coverage for your needs.
There’s truly something for everyone, regardless of your age or budget. Whether you opt for term, permanent, group, or guaranteed issue, you’ll get the peace of mind and protection that all insurance plans bring.
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