Second quarter Gross Domestic Product (GDP) came out on July 28th declining 0.9%, the second straight quarterly decline. The “are we in a recession or not?” talk turned business TV into a sports debate show. There are convincing arguments on both sides.

Inflation, stagflation, recession … We’ve seen these words in the news many times in 2022. If you’re approaching retirement or you recently retired, you may be looking for a way to hang on to your hard-earned savings.

The Fed raised interest rates by another 75 basis points. This was not a surprise; it was the expected outcome. Inflation is way too high, and the Fed is moving aggressively to contain it.

It has been an unusual time for the markets as both stocks and bonds have experienced meaningful declines which presents a unique challenge for us as investors. As we acknowledge this reality, we must also be careful not to overreact and abandon the time-tested principles that have seen us through challenging periods in the past.

Inflation remains the biggest concern hanging over markets with headline inflation reaching a 40-year high; this has created a tough environment for bond investors and the Fed has indicated they will do “whatever it takes” to combat inflation.

Savant’s Investment Research team reflects on the first half of 2022 and shares what they expect for the rest of the year.

Welcome to the inaugural edition of The Tradeoff, a monthly reflection from Savant’s Chief Investment Officer, Phil Huber.

Despite recent economic woes, there’s some good news to share. Mind-numbing losses have historically been a precursor to great future returns.

The first six months of 2022 were pretty abysmal. But we have reason to believe the rest of the year may not repeat the wealth destruction of the past six months. Savant’s Investment Research team reviews key economic indicators and historical returns to help put the last six months into perspective.

From an economic point of view, things have gotten so off-kilter that people are beginning to wonder if a period of stagflation might set in. Investment research analyst Danny Noonan examines the situation.

The monthly inflation report came out last week and was not well received. Inflation was up 8.6% in May, the highest inflation number since 1981. Six of the past seven inflation reports have been the highest inflation readings since 1981.

How important is it to keep an independent mindset when investing in the markets? It’s essential, according to Savant’s investment research. To illustrate, we make the case for diversification by drilling deep into the energy sector’s most recent journey — from bottom of the investment barrel, to helping some investors strike it rich.