Not to belabor the obvious, but boy, the market sure is taking a real beating these days. Maybe that’s not such a bad thing? Press the play button to find out why.
Currently, we are collectively suffering an economic illness. To cure it, we're taking our medicine, which truly tastes awful. But anybody who has come down with a bug and taken medicine to cure it knows that the former unpleasantness doesn’t last forever, and therefore, neither does the latter.
To be more specific, what’s happening right now is inflation, which absolutely has to be cured if we are to experience a healthy economic life. The cure, which may in the moment feel more unpleasant than the illness itself, is the U.S. Federal Reserve raising interest rates. If you're worried about what this decision might lead to, remember that recessions act like a cleansing mechanism. They expose and eliminate waste and inefficiency, ultimately creating a healthier economy when we come out the other end.
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