The Science of Balance

Everything in life is about balance and harmony. Our bodies are affected with and without balance in our lives. In other words, stress impacts our psychology. While it may seem overrated or impossible, maintaining balance throughout our lives is a cornerstone of overall well-being. Balance prevents stress. Stress, causes adverse health effects in the body, and leads to 75-90% of all physician visits. This is especially true for financial stress. At Amida Wealth we recognize balance as a lifelong commitment. We know that balance in our five fold elements of wealth (health, career, finances, relationships, and personal growth) will achieve harmony.

Balance Through The Holidays

This holiday season will soon bring you together with family, friends, work partners, charity events, and more. Certainly, the topic of money and economy is going to pop up. Perhaps, our emotions may get heightened. Remember that we are in a moving economy so emotions are bound to be high. Just like we seek harmony in our relationships, the economy is always trying to become more balanced. Unfortunately, not all monetary decisions lead to immediate balance. Some cause disruption and bring things more out of balance but the intent is that of ensuring we are in a measured and growth mode.

Macro Perspective

When things financially shift, we feel out of synch because we have not recalibrated our goals to where we are and what is happening. When we are in harmony, we can trust that it’s all part of a larger set of synergies. Our lives will always be shifting and situations will always be changing. The key is for us to be able to pause, elevate and look at things from a larger perspective. This is the macro perspective.

Look at the finances of the globe on a Macro view: Interest rates continue to rise as global central banks aggressively tighten to fight inflation, while still avoiding a potential recession. Despite the most aggressive Fed rate hikes in history, the economy, corporate profits, and labor markets aren’t signaling a recession on the horizon just yet. During these changing times, how do we position ourselves for this New Year when investors perspective is between hope and fear? First, don’t think in traditional terms! Look at the economy through a macro perspective.

Three Strategies For Success

#1.) Revisit your Strategy- This New Year, as you start thinking about your finances make sure you have a solid structure and game-plan in place. Hope is a good thing, but it isn’t a strategy! While inflation has declined from its peak, it’s still at a four-decade high. Remember, the Fed can’t hike rates forever.

#2.) Manage Your Investment For Total Return- Manage The Interest Rate & The length of your investment so that you’re looking at total return. There are four stages in the economic cycle: expansion (real GDP is increasing), peak (real GDP stops increasing and begins decreasing), contraction or recession (real GDP is decreasing), and trough (real GDP stops decreasing and starts increasing). Don’t time the market. Position yourself to always be ready for opportunity!

#3.) Find Opportunities In Non-Traditional Markets– Economies have cycles and the key is to always put yourself into a position to take advantage of the opportunities that each segment presents. Strategize for your success with your current advisor. If you need a second opinion or don’t have an advisor, you are always welcome to reach out to us.

#4.) Bonus– Take a deep breath & smile from the soul.

Amida Wealth Family Conversations

We know the many conversations you’ll have over the holidays with your family and loved ones. At your next gathering, listen intently and become present; physically, mentally, and emotionally present with no judgement. Is this conversation guided by hope or fear? Perhaps, are they open to share their financial perspective? Encourage those around you to read this article! Remember that you are always supported by Amida Wealth. We are one phone call away.

Final Thoughts

At Amida Wealth we know, balance in all aspects of our lives is a lifelong commitment. This is especially true for our finances. Going into the New Year, remember to reflect on the economy in a macro perspective. When you go micro, you lose sight of the big picture and how it relates to your everyday life and the goals you are trying to reach. Through the macro lens, we are able to see a much broader, and bigger picture of our lives and that the market. In other words, you can create more opportunities for yourself this New Year 2023!