How Recent Market Moves Could Affect Your Retirement

It’s Friday, June 13. With recent increases in gold and oil prices following global events, it’s a good time to review how your retirement portfolio is positioned to handle market volatility.

Commodity Gains Draw Focus to Portfolios

This past week, Brent crude oil rose 11% to $77 per barrel, and gold approached $3,445 an ounce—notable highs for this year.

While the direct impact on oil supply has been minimal so far, the perception of risk is shifting investor behavior. We're seeing a "flight to safety," with many turning toward gold and energy stocks, even as the broader S&P 500 remains near record highs.

Key Considerations for Conservative Investors

For retirees and others who rely on a fixed income, sharp commodity movements present two main challenges:

• Inflationary pressure, which can reduce your purchasing power.

• Increased market volatility, which can impact portfolio stability.

In response, defensive assets like gold and related ETFs are gaining attention. At the same time, falling bond yields could translate to lower income from traditional sources like CDs, Treasuries, or annuities.

The Fed’s Cautious Stance on Rates

The Federal Reserve is signaling it will not rush to cut interest rates, projecting only up to a 0.50% reduction by late 2025. With core inflation holding at 2.4% and wage growth still strong, yields on CDs and bonds may remain subdued.

For income-focused investors, this makes it more challenging to find returns that outpace inflation.

How to Reinforce Your Financial Defenses

Today’s headlines are an important reminder to review your strategy. Here are a few steps to consider:

• Diversify with hedges: Consider if gold, energy, or mining funds fit into your strategy as a potential hedge against inflation.

• Be aware of seasonal trends: Historically, summer months like June and July can bring increased market volatility.

• Review your fixed-income: Ensure your fixed-income allocation is still meeting your needs for growth and purchasing power.

A fiduciary advisor can help you tailor a strategy that aligns with your personal goals and risk tolerance.

Wishing you a stable and secure retirement,
The Wealth Money Catalyst Team