(WXYZ) — Americans face a triple threat to their finances, and the future is increasingly uncertain. Wall Street is in a market meltdown, the S&P 500 is in an official bear market, and the Dow Jones fell another 876 points yesterday.
On top of that, gasoline prices remain at record highs. AAA reports that Detroit’s metro average rose a penny overnight to $5.31 a gallon, and the Federal Reserve is expected to raise interest rates further this week.
The big question everyone is asking: Are we on the way to a recession?
Investors and many others are worried about an uncertain economic future, but the best way forward is not to panic.
Many worry if the Fed raises interest rates again, it will trigger a recession. Wall Street was in the red on Monday and May inflation figures are at a 40-year high of 8.6%.
Staying calm and approaching everything with caution is advice from financial experts.
David Sowerby is a portfolio manager who manages total assets of nearly $33 million. He said there are still investment opportunities for growth in this type of market.
“Rule number one, with the market down 20%, don’t capitulate, avoid that capitulation trade, where you feel like you can’t take the pain anymore and you’re going to be a seller,” he said. declared.
As investors fret over the Federal Reserve meeting, the White House said it is monitoring the situation closely.
“The way we see this is that the American people are well positioned to face these challenges because of the economic and historic gains we have made under this president,” said House press secretary Karine Jean-Pierre. White.
Prices at the pump are soaring and oil prices are hitting highs of up to $123 a barrel, along with rising demand and falling supply.
“Until those market forces hold up or slow down, we’re going to find ourselves in this area in terms of price. So the things that you can do personally to reduce your consumption, that will save you money” , Gary Bubar with stated AAA Michigan.
But as the economic threat looms on the horizon, many are worried. But Joe Rosenburg, who lost his home in 2007, said no matter how painful it was, he survived it and has a positive outlook for the future.
“I just dipped deep into my savings to support myself, but, you know, I’m turning 75 this month and I still have to work because of it.