The media runs to the microphones and reports these facts as if it were a total shock to everyone! Well, no, the markets have had these events already factored in. We knew rates were going up. The Fed chairman and the board members have been announcing and telling us this for months. Inflation had been on the rise and predicted to be higher for months.

It will very likely go higher still before it comes back down to tolerable levels. We know that based on history. Although, it has been 40 years since we last saw inflation like this, 1979 through 1982. Somehow that is a reason to be more afraid and overreact to inflation because "this is the highest inflation rate we have seen in over 40 years!"

Well, actually, that is normal! Would you care to guess when the inflation rate increased dramatically before the 1979-82 high inflation period? Yep, you guessed it. It was 35-40 years before that in the mid-1940's, and before that? Yep, you're right again, 35 years before that in the early 1900's. So every 35-40 years the economy goes through an inflationary period, historically for only 3 years or so, and yes, we can expect more inflation in the coming year or two and more interest rate increases from the Fed. These will not be surprised or unexpected. 

Also, something that is important to note, is that following these periods of high inflation, we have seen massive big bull market green zones. For example, following the early 1900's inflation, we saw the roaring 20's. After the mid-1940's inflation, we saw the huge green zone of the 50's and 60's and following the inflationary period of '79-'80, we saw the go-go green zone of the 80's and 90's.

The seeds of market recovery are being planted. Another important factor to consider is that we have 73 million millennials in the U.S. alone who are practically forced into buying stocks for next several decades.