Summary of The Economy in 2023: Investing in Volatile Times

00:00:00 - 00:35:00

In the video, Katie Gaddy and her guest, Liz Young, discuss the economy and what investors can do to prepare for the volatile times ahead. They advise viewers to remember that the market is a forecasting mechanism and that, overall, the economy is doing well. They suggest investing in volatile assets, such as stocks, and companies that are dependent on future growth, such as growth stocks.

• 00:00:00 In this video, Katie Gaddy and her guest, Liz Young, discuss what to watch for in the economy in the coming years, specifically in the next few months. Young discusses the idea that markets and economies often go down in a certain pattern, with the market dropping first and the economy breaking later. She advises viewers to remember that the market is a forecasting mechanism and that, overall, the economy is doing well.
• 00:05:00 The economy is in a time of volatility, and the stock market is likely to go down in response. The bond market is also in a time of volatility, with the yield curve inversion indicating a shift in risk.
• 00:10:00 The economy in 2023 will be influenced by the bond market, which is in a state of inversion. This may lead to a recession, as the Federal Reserve may raise rates too far and cause a domino effect.
• 00:15:00 The economy in 2023 will be volatile, and due to this, investors may want to consider investing in volatile assets, such as stocks, that are less sensitive to interest rates. Additionally, companies that are dependent on future growth, such as growth stocks, may be hit the hardest. Betterment can help you make a plan tailored to your goals and help you make the most of your money during these difficult times.
• 00:20:00 The author of the video discusses the benefits of tax-advantaged investing, including the ability to save money without having to pay taxes on the money invested. The author also discusses the potential for market volatility, and suggests that, if possible, investors should be patient and wait for the market to stabilize before getting back into the market.
• 00:25:00 The speaker advises people not to wait until they are "not afraid" or until the market is "safe" before investing, because this will never happen. He advises investing in a disciplined way, learning about the economy and making rules to avoid emotional decision-making.
• 00:30:00 Katie believes that a recession is possible in the first half of 2023, and that the stock market may not react as negatively as previous downturns. She also notes that inflation may be coming down and the Federal Reserve may slow rate hikes.
• 00:35:00 In the future, the economy is expected to be better than it is now, with stronger profits and less cost pressure. In volatile times, it is important to have a strong financial plan and be prepared for whatever may happen.