Most things in finance can be simplified into a simple supply versus demand equation. Without having to take an Economics 101 course, changing one or both sides of the equation will affect the price of the good or service in question. Think about the exorbitant prices people are willing to pay for popular sporting events or the hottest Christmas toy – a classic case of demand overwhelming the available supply. On the flip side, the discount bin at a department store represents oversupply related to current demand. Our present inflation predicament is a result of abnormalities in both supply and demand.

The rogue thunderstorm blowing into this situation is the standoff between Russia and the West by way of Ukraine. I don’t pretend to be an expert in geopolitical matters, so I won’t attempt to forecast the outcome. However, plenty of investors are taking measures to protect their portfolios from any escalation on that front, which shows in the daily price moves. This isn’t the first flare-up of hostilities, and it certainly won’t be the last. Before hitting that sell button, think about all the prior occurrences and the related outcomes.

For the average American, the Federal Reserve raising interest rates has ramifications beyond the immediately visible. With the current expectations being that the Fed will likely raise its key interest rate possibly up to four times in 2022, this piece will examine the impact of higher rates.

Like it or not, the Federal Reserve's actions (and sometimes just words) hold tremendous sway over the stock market and the economy. Their influence over the markets birthed the saying, “Don’t fight the Fed.” Recently, they released a statement about what they believe to be the future of their monetary policy in support of their stated goals: maximum employment and price stability. This post will examine what it means to investors in the coming year.