The President of Direct Investors Business for Victory Capital discusses the economy, inflation

Saint Anthony – One of the topics on the minds of many families across the country is the economy – with inflation, stock market woes and interest rates – there’s a lot going on – and a lot of questions.

Nikhil Sudan, president of Victory Capital’s direct investor business, has joined Leader SA in planning to disrupt the current economy and move forward.

“Well, I think we’re definitely in a period of very high economic uncertainty, and the stock and bond markets are reflective of what’s going on in the broader economy,” Sudan said.

There are several factors at play that affect businesses and households.

“One, inflation is still high at over 8 percent. It started appearing in all the products we buy in stores, but now it is appearing in the services we all pay for, such as insurance, rent, health care, and many other things. The Federal Reserve has raised interest rates five times this year. They have made it clear that they will continue to raise prices until they curb inflation, even if it slows the broader economy.” Sudan said.

That effect is also being felt in the housing market.

“If you look at last year, home sales have been down for about eight months in a row, and that’s because mortgage rates have more than doubled from last year, which of course makes housing cheaper. The good news is that housing prices are still relatively stable, which means that for most homeowners, their home is worth more than what they paid for it a year or two ago.“ Sudan said.

Fortunately, we don’t feel that way here in the Alamo City.

“Here in San Antonio, we’re very fortunate because we’re one of the fastest growing major markets in America, which is good for the demand for housing and services and for our region.” Sudan said.

Although there is a lot going on in the game, there are two silver linings.

“it is It’s not all doom and gloom. If you look at the job market, it is still strong. Employers are still hiring. Unemployment is relatively low and wages are rising. And now some prices are actually going down.“ Sudan said.

Inflation also increased Social Security.

“If you’re on Social Security, your benefits will increase by 8.7% next year, which is good news for 70 million people in America covered by such programs.” Sudan said.

Obviously, these compounds increase the risk of reduction.

“I think when you look at what the markets are pointing to, this is definitely a very high risk of a recession. And typically, when the Fed raises interest rates too much, the overall goal is to slow economic growth. Now, balancing growth and controlling inflation is always a tight balance for the Fed. But of course the stakes are very high these days.” Sudan said.

For families in the country, there are simple strategies to plan for the future.

“One, invest early and two, invest often. It means investing or using time. It is too late to start investing, especially if one is considering long-term goals. Retirement, buying home savings for children. Start college at whatever level is right for you. Investing often means being proactive and investing on a regular schedule. For example, an automatic investment plan into mutual funds. This is a strategy where you invest a set dollar amount on a monthly or weekly schedule. Now, investments are not guaranteed against loss, but investing on a regular schedule can help you take advantage of fluctuations in the market.“ Sudan said.

If you want to learn more about Victory Capital, you can find resources and tools here.