Many Americans are utilizing investment accounts to build wealth. In fact, sums held in investments often exceed what would typically be held in a checking or savings account. Additionally, the average consumer likely does not check in on their investment account activity as often as they review their checking account balance. What does this all add up to? Vast opportunities for fraudsters to target unsuspecting consumers. Read on to learn how can protect your accounts.

Matching assets with liabilities is one of the prudent rules of banking. The failure to do that led to such financial crises as the Savings & Loan collapse of the 1980s and it surfaced again when a little-known, yet financially prominent California bank collapsed last month, sharply shifting economic fortunes and central bank policy.

Your investment portfolio can help to secure your future, but did you know it can also provide you convenient access to funds when you need it?

There's no doubt about it — 2022 has been a tumultuous year for the financial markets. If you are looking forward to a fresh start this year, why not begin with your personal finances? Here are some tips to help you get started.

There's no doubt about it — 2022 has been a tumultuous year for the financial markets. If you are looking forward to a fresh start this year, why not begin with your personal finances? Here are some tips to help you get started.

This year has been an admittedly painful one for both U.S. and international stocks. Through 9/30/22, and per MSCI Investable Market Index (IMI) data obtained through Bloomberg by Northern Trust Asset Management, U.S. equities are down 24.7%, emerging international equities are down 26.5% and developed international equities (ex-U.S.) are down 26.6%.

The reigniting of inflation to its highest levels in over four decades has been the catalyst for the dramatic sell-off in stock and bond markets for the past year. Inflationary pressures began building in early 2021 as the result of several factors: revived consumer demand in the aftermath of the COVID shutdowns; supply chain disruptions from multiple sources; and the excessive monetary and fiscal stimulus from multiple COVID rescue plans implemented by the Federal Reserve and the Federal government.

U.S. financial markets continued to be under pressure this month, with the S&P 500 Index (a proxy for large U.S. stocks) down over 18% from its 1/2/22 all-time high, the S&P Mid Cap 400 Index (a proxy for mid-sized U.S. stocks) down over 17% from its 11/8/21 all-time high, and the Russell 2000 Index (a proxy for small U.S. stocks) down over 25% from its 11/8/21 all-time high, as of the date of this writing. The pressure may very well continue, as the Fed raises interest rates and withdraws other forms of stimulus to bring inflation under control, but one thing’s for sure – if the Golden Rule is to sell high and buy low, things are becoming much more interesting on the buy side of the equation, particularly for small-cap stocks.

Equity markets fell last week following a hotter than expected inflation report. The S&P 500 was down over 4% on Tuesday alone, and off 4.7% for the week. Additionally, bond prices fell as yields rose with the 1-year Treasury topping 4% at one point late in the week.

Through 7/31/22, Northern Trust reports negative year-to-date investment returns in nearly all areas of the bond market, with emerging market debt faring the worst (down 14.3%), followed by high yield debt (down 9.1%), investment-grade bonds (down 8.2%), municipal bonds (down 6.6%) and Treasury inflation-protected securities (TIPs – down 5%). The greatest contributing factor to these declines has been the Federal Reserve Bank’s campaign to raise interest rates – specifically, the Federal Funds rate, which is a short-term lending rate that many other lending rates are influenced by. Unfortunately for bond investors, when current interest rates go up, existing (high quality) bond prices come down, as investors demand a higher rate of return on their new investment dollars.

With Gross Domestic Product (GDP) contracting for a second consecutive quarter in Q222, the U.S. economy has technically entered a recession, although many political figures would have us believe otherwise. If we’re not in “recession” already, we (likely) soon will be – financial markets have essentially told us so. Financial markets are almost always ahead of reality, in terms of discounting future earnings, directional moves in interest rates and even seasonal fluctuations in supply and demand. The last 6-12 months have been no exception, with nearly all parts of the market having sold off considerably. Domestic and international stocks are down 19-33%, bonds are down almost 17% and, more recently, even commodities are off approximately 20% from their highs. With respect to the equity market at least, drawdowns of 20% or more like this usually presage recession.

The first half of 2022 proved to be a reminder to investors of the unpredictable nature of investing. While markets weathered the COVID pandemic and its economic and humanitarian damage with surprising resiliency, they seem less able to adapt to the current issues around inflation. Investors certainly knew coming into the year that interest rates would be on the rise in an effort to quell higher prices, but no one anticipated how aggressive the Fed would become after sitting on its hands through 2021. In the Fed’s defense, China’s zero-tolerance policy on COVID has caused continued supply chain issues, and Russia’s invasion of Ukraine sent energy and other commodity prices skyrocketing, both giving inflation an unexpected tailwind. Either way, markets, both equity and fixed income, have not reacted kindly to the new stance and the Fed’s three increases totaling 1.5%. This puts rates well ahead of what was the original year-end estimate, with more rate hikes to come. So where do we go from here?

2022 has certainly been an interesting and somewhat stressful year for investors, with high inflation and market volatility dominating the financial news daily. During all of this, even bonds—historically less risky than stocks—have decreased in value year to date. To understand why, you must first understand the nature of bonds and why interest rates and inflation can impact the prices.

Well, it’s official – we’re now in a bear market! Stocks, as measured by the S&P 500 Index (a proxy for large U.S. companies), have fallen by more than 20% from their all-time highs, while the Nasdaq Composite Index (almost half represented by technology companies) and the Russell 2000 Index (a proxy for small, U.S. companies) have both fallen by more than 30% from their respective highs. Even bonds, as measured by the iShares Core U.S. Aggregate Bond ETF and generally considered a safer type of investment, are down by more than 13% from their recent peaks. Right or wrong, markets have priced in a recession, very few things are working for investors, and it’s easy to understand why many people are feeling a sense of despair. It’s also the exact time when investors need to be reminded of the Golden Rule – sell high and buy low.

Equity markets sold-off on Friday, following a disappointing Consumer Price Index (CPI) reading that showed headline inflation picked up last month, and that selloff continued through Monday. CPI was reported at 8.6% year-over-year, higher than last month’s 8.3% increase, and ahead of expectations. Core CPI, which excludes food and energy, came in slightly ahead of estimates at 6.0%, but that was down from 6.2% in April.