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The Week in Review
• Investors continue to monitor the ongoing Russian invasion of Ukraine, which has rattled energy markets and sent oil prices higher. Energy stocks and the bond market were generally volatile throughout the week. Analysts predict markets will continue to remain volatile until the situation reaches some sort of conclusion.
• Fed Chair Jerome Powell testified before Congress and indicated he plans to support a 25-basis-point hike to interest rates this month. This involves the central bank’s federal funds rate, or the interest that banks and other depository institutions charge when lending money to each other. With inflation accelerating at its highest rate since 1982, the Fed wants to cool off the economy, ideally without doing unnecessary harm to the job market.
• Jobless claims came in 215,000 for the week, lower than what was anticipated. The number remains near historic lows. Separately within the job market, nonfarm workplace productivity went up 6.6% in Q4 2021, according to the Bureau of Labor Statistics.
For more economic news and how it affects your money, visit the SoFi app.
Investing With the Business Cycle
A “business cycle” refers to the periodic expansion and contraction of a nation’s economy. Also known as an “economic cycle,” it tracks the different stages of growth and decline in a country’s gross domestic product, or economic activity.
No business cycle is identical, but history shows there can be a rough pattern to which industries do better as the economy expands and contracts. Investors often take cues from the current stage of the economic business cycle to determine which sectors to invest in next. Learn how to prepare and invest for different business cycle stages.
This Week’s Top Stories
It’s still too soon to declare that the Russia/Ukraine war won’t cause globally contagious effects, and this article lays out what Liz sees as the main areas to watch.
Although seemingly trivial compared to the primary crisis Ukraine is facing, this article will cover the possible contagion effects that could, or already have started to, affect other global financial markets and economies.
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If you’re buying or selling a home this spring, the ongoing geopolitical tensions could have an impact on your bottom line. While mortgage rates had been climbing, they started falling as of this week’s invasion.
Mortgage rates are closely linked to the 10-year Treasury, and yields began to decline as risk-averse investors started buying up bonds. While it’s not clear when the situation in Ukraine could reach a conclusion, analysts suggest mortgage rates could continue to be impacted in the meantime.
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So-called “financial infidelity,” in which committed partners lie about money, is a common problem for couples. Research shows 27% of people have lied about finances — but there’s a three-step way to come clean and begin rebuilding trust.
These types of lies can be relatively small like taking too many trips to Starbucks (
SBUX), or more serious like declaring bankruptcy in secret or hiding a gambling addiction. In order to overcome the hurt and frustration involved, compassion, planning, and communication are needed.
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Deep Dives from SoFi Learn
Between open houses and bidding wars, buying a home can be draining. Meanwhile, in-the-know and select clientele have the chance to tour and purchase properties before they even hit the market.
The practice, known as pocket listings or whisper listings, is becoming more common in real estate. This insider access may sound tempting, especially in a hot housing market, but there are legal caveats and financial considerations to account for before pursuing a pocket listing.
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Traveling during spring break doesn’t have to be expensive. And even if you’re staying home, you can use the time to invest and jump start your savings for your next adventure.
Our monthly roundup of articles from around the web includes tips on how to spend less on spring break trips, navigating a vacation safely during a pandemic, and how to fight travel FOMO.
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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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