If you look at the stock market, you would think that the economy is doing great! The stock market is up 13% to 14% yet consumer sentiment is at historically low levels. Inflation is up, gas prices are up, food prices is up, US debt is up, and cost of living is up. With many people struggling to make ends meet, you would think the economy isn’t doing great. I’m so confused on the economy right now.

When you look at corporate profits, many large companies have exceeded expectations. With innovations with AI, incorporating new strategies, and looking forward at future expectations are just a new examples that will affect corporate earnings and their stock price. So, are companies doing that well? Apparently so.

As a consumer, we need to spend money on necessary things to survive…food, clothing, and shelter. Everything else is a secondary. It’s no wonder businesses like Walmart and Costco are beating expectations. Their stock prices have gone up recently.

I’m torn because as a consumer I feel the pinch but as an investor, I’m excited to see my investments grow. The K-shaped economy refers to a situation where different groups or sectors experience sharply diverging economic outcomes. Those who have assets such as real estate and equities have a growing financial experience whereas another with less assets and wealth have an opposite experience.

My plan is to invest for the long run and I will not change course when the economy experiences a downturn. If I had stopped investing, I would have missed out on the recent growth.

You may feel confused on the economy and it doesn’t make sense right now. If you stick with your goal of financial independence and trust that the system works, I believe you will benefit in the long run. I’ve lived through the dot com recession, great recession, and the covid-19 recession. I did not change course and stuck with my investing plan. I came out on top even though the economy had such a downturn each time. If you are interested in following my journey, email subscribe here to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.