Wait for the bad weather to pass and stay the course
Volatility fluctuates based on where we are in the economic cycle, but it is
a normal feature of markets that investors should expect. When stock markets
start correcting, daily injections of bad news may sound as though it will never
end. This can spark anxiety, fuel uncertainty and trigger radical decisions in
even the most seasoned investors.
Very low or very high inflation is damaging to the economy. The aim is
usually to try and keep the Consumer Prices Index (CPI) at 2% in order to
maintain a ‘Goldilocks Economy’ – not too hot, not too cold.
