Inflation is back. Strategies for you.

As you probably know, the US Consumer Price Index jumped 8.5% in March 2022 from one year earlier. The last time inflation was this high, 1981, a first-class stamp cost 20 cents; today, it’s 59 cents. We can all feel inflation’s effects and we definitely hear a lot about it, but what can we do? Here’s our advice:

Don’t lose your perspective. Stamps do cost more than they did in 1981 but thanks to innovation, the price of many goods and services has actually gone down. You are paying much less to stay in contact with friends, family and customers. Back then, we did not have text messages, e-mails, or WhatsApp. Long distance phone calls were very expensive, sometimes over a dollar a minute. Of course, as you make summer vacation plans, you will notice a definite uptick in prices. Does that mean you should cancel your trip? Absolutely not. It might cost more to fly or drive on your next vacation, but if you can afford it, then do it. Go see the sights and have some fun!

What we are doing. Just like we recommend to you, we are focused on what we can control. Making large changes to investment allocations in reaction to current market conditions is not a wise long-term strategy. As always, we are working with clients to ensure their invested funds are for long-term goals, while keeping enough cash for shorter term needs. Stocks have traditionally been an inflation fighting hedge and continue to be a large part of our portfolios. 

What you can do. You can’t control rising prices or what the Fed does, but you can control what you’re doing. Invest in yourself. Ask for a raise or consider raising your prices if you own your own business. In this environment of low unemployment, employees have negotiating power. Additionally, you may want to consider FDIC-insured high-interest savings accounts. According to Ken Tumin, founder of, “Online banks have a history of hiking their savings account rates aggressively as the Fed hikes rates,” while many large banks have plenty of deposits and are less likely to raise their rates. 

But think about this: Our world is opening up after COVID. If you are reading this, you survived a pandemic. In the depths of the pandemic, we all said if we get through this, we are going to visit our friends and families, dine out and travel. Don’t let inflation stop you from living. Let’s get out there and have some fun!

For more insight: See this quarter's report from the asset team at Northwest Asset Management - Quarterly Market Guide

Cass, Bleckley and Megan

**The second winner of our pet portrait contest is Lexie Evans, aka Piglet, seen above. She is the dog of client Bill Evans. I am enjoying painting our clients' dogs and cats. I am branching out to cows. Cass

Quarterly statements have been posted to your Orion portal! Visit our web page for links to Fidelity (for access to statements and tax documents) and to the Orion portal (for access to performance reports and billing statements): Watercolor Financial Group website

Watercolor Spotlight
Megan Poore enjoyed a celebratory lunch with Tom and Sue Lambe to celebrate Sue's retirement. Seeing one another in person again was almost as exciting as the table umbrella being blown onto the roof of the restaurant by a gust of wind. Congratulations, Sue, on your retirement!

Bleckley Dobbs, Cass Grange and Megan Poore provide advisory services through NWAM, LLC dba Northwest Asset Management, an SEC registered investment adviser. Watercolor Financial Group is not a registered investment adviser. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. This material is intended to provide general financial education and is not written or intended as tax or legal advice.