Much of my job as a financial advisor is to be a voice of reason—a calming presence. I do not find this role difficult because I truly believe what I say:

Everything will work out.

The economy will bounce back.

We’ve been through stormy financial periods in the past, and we’ll weather this one as well.

Though several financial organizations have predicted a recession in 2023, there is reason to believe this one won’t be nearly as strenuous as other recessions we’ve experienced in the past (such as the one in 2008). The economists at Goldman Sachs, for example, are predicting a modest recession in the coming year, far less severe than recessions we’ve endured in the past.

JPMorgan also predicts a “mild” recession in 2023, while Morgan Stanley believes the US will “just skirt” a recession next year. This outlook is more optimistic than many news outlets would have you believe. Much of the news I’ve seen lately is largely “doom and gloom,” with dire warnings and little reason for hope.

Allow me to be a much-needed voice of hope!

Currently, the economy is certainly not tanking. The Federal Reserve is proactively raising interest rates to correct runaway inflation. The US added over a quarter of a million jobs last month.

According to Jan Hatzius, head of Goldman Sachs Research and the firm’s chief economist, “There are strong reasons to expect positive growth in coming quarters.” She says that personal income is bouncing back, and Goldman Sachs economists, “expect real disposable income to increase to a pace of more than 3% over the next year.”

While this may be a period of discomfort for some, it is not the end of the world. And things will eventually get better. They always do.

I encourage you to stay the course. Don’t let the fear-mongers get to you. Keep your head up, and don’t make any rash decisions.

In the meantime, there are things we can do to weather the storm and come out the other side in a better financial position. For example, make sure you are staying current on your bills and, if possible, paying down debt. If you are self-employed, take advantage of tax breaks and government assistance programs that are available. And make sure you are contributing to an emergency fund so you have a cushion to fall back on if necessary.

I understand that not everyone shares my optimism. And that’s OK.

What I will say, though, is this: please don’t give up hope. This, too, shall pass. And when it does, I believe we will come out of it stronger and more resilient than ever before.

If you need help staying level headed and optimistic during these turbulent times, please reach out. I am here for you.

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