Strategies to help you build wealth in the face of inflation and recession | Job Binary

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As the US economy struggles to find its footing as it emerges from the Covid-19 pandemic, two uncertainties loom: persistently high inflation and a possible recession.

So it’s no surprise that financial advisors on the CNBC FA 100 list for 2022 are hearing about these two concerns from their clients.

“Clients are being bombarded with recession headlines and inflation headlines and they don’t know what to do with them,” said Brian Spinelli, senior wealth advisor and chairman of the investment committee at Halbert Hargrove in Long Beach, Calif. 8 in this year’s FA 100 list.

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Here’s more information on CNBC’s FA 100 list of top financial advisory firms for 2022:

Halbert Hargrove’s clients range from young investors who are still building wealth to retirees who rely on their portfolios for income and high net worth individuals and families.

For many of these clients, this isn’t the first time they’ve seen a major market downturn or downturn, Spinelli said.

But what scares people is knowing that this time will be different than before, he said.

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“We’ve never had anything like this in 40 years,” Spinelli told clients about the combination of record high inflation and fears of a recession.

“But you went through something 10 times worse about 14 years ago,” he said as a reminder of the financial crisis.

Take the emotion out of it

Top advisers admit they don’t know how today’s uncertainties, including the Russia/Ukraine war and supply chain issues, will go away.

But there are definite reasons for optimism – and opportunities, they say.

“It may be painful, but there’s nothing that can’t be fixed,” said Bruce Cardon, president and chief investment officer of Winnwood, Pennsylvania-based Conservest Capital Advisors, which ranked 82nd on the FA 100.

“We need to get back to balance,” he said.

Whether it’s a soft landing or a hard landing to get there, “it’s not Armageddon,” Cardon said.

More than half of Conservest’s clients are mid-market business managers and public companies in various industries.

Cardone says he reassures investors that they can better position themselves by making decisions based on lessons learned from past downturns and current data. Now may be the time to add risk, he said.

“History rewards those who take away some of the emotion,” Cardon said.

‘stand there’

David Rea, president of Salem Investment Counselors, a Winston-Salem, North Carolina firm ranked No. 6 on this year’s FA 100 list, said his message is “stay with the good companies.”

This checklist for attractive stocks includes good management, high-quality balance sheets, low debt, pricing power and a history of long-term earnings growth. Strong worldwide sales and dividend increases are ideal, Rea said.

For the first time in 10 years, higher interest rates are making some alternatives to stocks, such as bonds, more attractive, he said.

Rea said he reminds Salem’s clients, 90% of whom are high net worth individuals, that just like you can’t call when the market will bottom, you can’t tell when it will go up.

“When you’re doing your homework, look for things that are really cheap and fun for you, and maybe you’ll get a bite,” Rea said.

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