Two the Point — Where’s the Recession?

The U.S. economy has been a hot topic of conversation, with many people wondering if a recession is on the horizon. While there are some signs of a slowdown, the U.S. economy has so far defied expectations and performed admirably.

One important indicator of economic health is the job market. The U.S. unemployment rate is currently at 3.7%, which is near a historical low. In addition, there are currently over 10 million job openings in the economy, and initial jobless claims have yet to rise meaningfully. All this suggests that the labor market remains on firm footing, even as the Federal Reserve fights to get inflation in check.

Meanwhile, despite the waves of layoff announcements (particularly in the technology sector) and preparations for an economic slowdown, the stock market has experienced a significant upswing. As of this writing, the S&P 500 has posted double-digit gains for 2023. This highlights the risks of emotional investing and market timing.

Amidst economic uncertainties, it is crucial to focus on a thoughtful strategic plan to help reach your financial goals. While risks are skewed to the downside in the near term, it does not mean that your financial goals should be ignored. Instead, a thoughtful approach to portfolio construction is key to avoiding emotional reactions and positioning your portfolio for success.