Emotional Investments: Why They Happen and How to Avoid Them

COVID-19 hit us in waves, and not just outbreaks of infection. It also brought waves of uncertainty – over everything from vaccine safety and effectiveness, inflation, and stock market volatility. That uncertainty led to fear, which prompted anti-social behaviors like fighting over the last package of toilet paper. But the pandemic also prompted many people to think about what’s most important to them in work and in life, and what makes them truly happy. As a result, a giant wave of workers quit their jobs in what’s become known as The Great Resignation.

Markets have consistently declined over the past few weeks as a result of the Russia and Ukraine conflict. Specifically, markets largely unwound the initial reaction of Russia’s invasion, safe haven currencies lost ground, and Treasury yields rose. The Dow Jones Industrial average finished with its best day of the year after Russian leadership agreed to meet with Ukrainian officials, suggesting that Putin is open to negotiations.

Johnson Financial Group’s Brian Andrew and Jason Herried held a client call to discuss what to expect from markets going forward given the events above, the strength in the stock market and low interest rates.