The best way to make rewarding money moves with your finances is to stay updated with the top economic trends. April Money Moves: Economy Snapshot is an in-depth guide that helps you stay informed about how to make smart financial decisions in 2023.
This April has been a busy month for financial news, so continue reading to learn more about how the current economic climate can affect your investments and financial plans. We’ve curated a list that highlights current market trends and the best strategies to help you plan accordingly.
Overview of the Economy
This April, the global economy continues to recover from the financial impacts of the COVID-19 pandemic. Though production is picking back up, the global economy continues to see higher demand than supply, especially in the technology sector.
While predictions for the future remain unclear, April saw some new highs for the stock market, growing inflation rates, which could lead to higher interest rates, significant changes regarding fossil fuels, and noteworthy news from cryptocurrencies. We’ll discuss each in more detail below.
Post-Pandemic Recovery
During the pandemic, supply chain disruptions resulted in a shortage of goods, including computer parts. These shortages are still felt in April, though the global economy shows signs of post-pandemic recovery.
The US labor market continues to have over eight million fewer jobs than before the pandemic, despite an increase in new hires over the past several months.
Europe approved a €750 billion pandemic recovery fund to keep countries in the EU afloat while recovering from financial losses during the pandemic.
Stock Market
This April, the S&P 500 and Nasdaq Composite hit record highs in the United States. These highs resulted from strong reported earnings from the technology sector from companies like Apple, Amazon, Microsoft, and Alphabet.
Inflation
March 2023 saw the largest monthly increase in inflation in the United States since June 2009, with the Consumer Price Index (CPI) rising by 0.6%.
This increase in inflation continues in April and reflects higher demand for goods and services. Inflation rates are something to watch since interest rates are likely to rise in response to the higher cost of goods and services.
Oil & Precious Metals
In March, the news reported that the Organization of the Petroleum Exporting Countries (OPEC) agreed to increase oil production.
However, April headlines share that Saudi Arabia and other leading oil producers will reduce their production by up to one million barrels per day starting in May. While this hasn’t yet taken effect yet, gas prices will likely rise due to diminished production.
Precious metals like gold continue to be safe investments with stable prices.
Cryptocurrencies
Bitcoin reached an all-time high this April, with many reports suggesting the cryptocurrency will reach a value of $1,000,000 by 2025. That said, April saw fluctuations in cryptocurrency prices, and governments are cracking down on Bitcoin mining practices and seeking to impose more regulations on cryptocurrencies.
Financial Planning Strategies
Alongside fashion and beauty trends to watch in 2023, trends in the economy are worth paying attention to so that you can make smarter money moves. Though the economy is seeing a recovery after the pandemic, investors are advised to remain vigilant as global markets continue to fluctuate.
It can be challenging to navigate smart financial moves when the global economy continues to remain uncertain. However, some of the best financial strategies for investors this month include the following:
- Certified deposits
- Budgeting and saving
- Researching risks and market trends before investing in stocks, bonds, cryptocurrencies, and mutual funds
- Diversifying investments
- Investing in steady markets like precious metals
Below, we’ll dive into the benefits of making smart money moves this month.
Benefits of Making Smart Money Moves Now
It can seem daunting at first for those looking to get into the world of investing. However, there are many benefits to investing now.
Short-Term Gains
New investors often think they won’t see a return for several years. However, smart money moves can provide short-term gains when done right. For example, purchasing real estate or rental housing is one way to see short-term gains (through monthly income).
Long-Term Security
Investors are more likely to see long-term security when they diversify their portfolios and make smart money moves. Long-term investments don’t provide immediate results. However, allowing your money to grow slowly over time is one of the best ways to ensure you have a nice nest egg when the investment period ends.
Resources to Help You Get Started
If you want to start making money moves this month, check out some of the best resources to help you get started.
Alternatively, reach out to an investment banker to discuss your financial profile and how to get started making money moves now.
Conclusion
Now that you have an overview of the economy in April 2023, you can continue to follow the U.S. and global financial trends to make smart investment decisions with your hard-earned money.
Don’t wait any longer. Get started growing your money so that you can enjoy more financial freedom with short-term gains and long-term financial security.
Related: Real Estate Forecast: Will Housing Prices Go Down Before 2024?