April, 2022
Stocks Extend Gains
Markets bounced around all last week as investors grappled with the crosswinds of rising yields, continued hostilities in Ukraine, and hawkish comments from Fed Chair Jerome Powell. After suffering declines in two of the first three trading sessions of the week, stocks turned higher on a good jobless claims number that investors interpreted as continuing economic strength.
Stocks drifted higher as the week came to a close amid rising bond yields, which on Friday saw the 10-year Treasury yield rise for the 13th time in 16 trading sessions.1
Labor Market
Many economists speculated that the invasion of Ukraine would likely shave economic growth in the short term as hostilities worsened supply chains and increased inflationary pressures. The impact, so far, has not been seen in the labor market.
Last week’s initial jobless claims fell by 28,000 to 187,000, the lowest level since December 1969. The number of people on state unemployment rolls fell to 1.35 million, from 1.42 million the previous week, while open jobs are at a near-record high of 11.3 million. Employers’ need for workers suggests that the demand for products and services has remained resilient despite the events in Eastern Europe.2
Inverted Yield Curve
A commonly acknowledged early recession indicator is when the 10-year US Treasury rates are lower than the 2-year US Treasury rates. When shorter term rates are higher than longer term rates, it is called an inverted yield curve. As you'll see in the chart below, in the past, this has led to muted returns in various markets. Of course, this is just an indicator and has not always meant a recession was imminent.
The Risks of Cryptocurrency
Like many Americans, you probably saw a few Super Bowl advertisements for the cryptocurrency industry this year, and they haven't slowed down since. If you’ve been paying attention to the news, there’s no question you’ve heard of someone creating a cryptocurrency wallet. With all the excitement, you may be tempted to invest in, or mine, cryptocurrency yourself.
But before you dive in, you should know that cryptocurrency is inherently risky.
Unlike banks and brokerages which report to the state and federal government, there's no regulatory body watching over the crypto market. In addition, crypto prices are heavily susceptible to sentiment. As sentiment changes, prices shift — sometimes drastically. In other words, cryptocurrency is driven mainly by the hope that someone will purchase it for more in the future than the initial investment.
At the same time, many cryptocurrency exchanges have become targets for criminals. For example, did you hear about what the Justice Department has called its "largest financial seizure ever?" A couple was recently accused of conspiring to launder billions of dollars worth of bitcoin stolen during a 2016 hack, which targeted a well-known virtual cryptocurrency exchange.3
It’s natural to be excited about a new opportunity, especially one with as much media buzz as cryptocurrency continues to generate. But before you get started, it's crucial to research and understand the risks. We’re always here to help.
6 Eco-Friendly Earth Day Tips You Haven't Heard Already
Earth Day is coming up on April 22nd and we here at GTS Financial are pretty excited about it. After all, environmental responsibility is an integral part of our goal to have a big impact not only on the lives of our clients but our community as well.
We are so committed to using everything we do as a vehicle for good that GTS Financial is a pending B Corp. What is that, might you ask?
B Corps are businesses that meet the highest verified standard of social and environmental performance, transparency, and accountability. It involves a vigorous assessment that only one other advisory firm in the state of Minnesota has met.
As a business, here are some of the ways we prioritize our planet:
• We strive to be a paperless work environment, leveraging technology to collect e-signatures for paperwork whenever possible, and using 90% post-consumer recycled paper for printing and copying.
• We minimize car trips where we can by encouraging videoconferencing for both internal and client meetings, allowing for a remote work environment, and carpooling to company outings.
• On sunny days, we leave the lights off! Our big windows on the 15th floor are an excellent source of natural light.
Everyone has already heard to plant a tree, recycle, and take shorter showers to be gentler to Mother Earth, so we thought it might be fun to share some out-of-the-box, lesser-discussed eco-friendly tips to challenge you to find new ways to shrink your carbon footprint this Earth Day (and beyond!)
Meatless Mondays - Not everyone may feel they are made for a vegan or vegetarian lifestyle, but who says you have to go all or nothing? According to a European Parliament study, the average vegetarian is responsible for half the greenhouse gas emissions of the average meat-eater.4 Using that logic, eating meat even one less day per week could reduce emissions by 7%, and if more omnivorous eaters got on board for this small change in their diet, it could still make a big impact! "Convincing meat substitutes like Impossible Burger and Beyond Meat are easy ways to replace your favorite cheeseburger without giving up that taste you love," says Shel Horowitz, author of Painless Green.5
Stop Watching the Pot - That electric kettle isn't just for making tea in the morning. You can use it to pre-boil water for pasta or rice to jumpstart the process. It's twice as efficient at boiling water and saves you time too!5
Surf the Web, Plant Trees on Land - Have you ever heard of Ecosia? It is an internet search engine that plants trees with its ad revenue.5 To date, they have already planted more than 146 million trees! Why not check it out the next time you need to look up the name of that actor who played in that one movie, or what it would look like if a Pomeranian and a Pug had puppies (hint, cute!)
Tool-Pool - Whether you are in the middle of major renovations or just need to fix a minor plumbing problem, it is unnecessary to purchase every single tool you'll ever use once. Borrowing not only saves you money, but reduces packaging waste in landfills and shipping emissions.5 If you can borrow a cup of sugar from a neighbor, hopefully you could also borrow a hacksaw. Not friendly with your neighbors? There's an app called Sparetoolz for peer-to-peer tool rental you could check out!
Eating Good From Your Neighborhood - Beyond the obvious economic benefits to small businesses in your community, when you eat local, you are caring for the planet well beyond your neighborhood. "Food miles" is the term used to calculate how far food items travel from farm to table, and as you can probably guess, the farther the journey, the more fossil fuels are used and air pollution created. Additionally, farms that go out of business tend to sell to commercial developers, so sourcing your foods locally keeps the farms near you from becoming the parking lot near you.4
Ditch Plastics with Shampoo Bars and Beeswax Wrap - In 2016, experts predicted there will be more plastic than sea life in the ocean by 2050 if nothing changes in our consumer habits.6 Thankfully, there are functional new alternatives bubbling up (pun intended) every day to combat this crisis. Take shampoo, for example. Plastics have been the go-to for shower-safe packaging for the longest time, but now you can buy a bar of shampoo, lather up your hair, and rinse. Bar shampoo is plastic-free, a 2-3oz bar should last through 50+ washes and you won't be paying to ship the 80% water inside a traditional liquid shampoo bottle.5
In the kitchen, consider beeswax wrap as an alternative to plastic cling wrap. Made with a piece of cotton fabric that is coated with a mixture of (you guessed it) beeswax, jojoba oil, and tree resin- this new alternative is reusable, antimicrobial, and actually keeps food fresh longer because it is more breathable than plastic.7 All you have to do is warm the wrap with your hands to shape around the other half of your avocado, cucumber, or brick of cheese, then wash in cold water and mild soap between uses. When they eventually reach the end of their lifespan, you could literally bury them in your backyard to dispose of them because they are biodegradable. I think I hear Mother Earth, and she's saying, "That's the bee's knees!"
Design A Self-Care Plan That Actually Fits Your Life
When many people hear the words "self-care," their minds immediately go to the extra luxuries they rarely have time for - a bubble bath, pedicure, or a weekend getaway. What many of us don't realize, however, is that self-care encompasses a whole lot more than just finding ways to relax.
Self-care is defined as 'the practice of taking an active role in protecting or improving one's own well-being and happiness.'8,9 Since we are all complex and multidimensional individuals, self-care too, falls into 5 specific facets: physical, social, mental, spiritual, and emotional. Research suggests that having an effective self-care routine is vital for building resilience towards the inevitable stressors we all face in life, and is associated with a multitude of health benefits.9
The tricky thing, however, is there is no one-size-fits-all 'effective self-care routine'. Everyone has varying levels of needs in each of the five facets and those needs may change across your lifespan.
In order to create your own personalized self-care plan for your current season of life, you should first assess your needs across the five types of self-care. Take a moment to consider the following:
Physical
Remember there is a strong connection between your body and your mind. When you are caring for your body well, you will think and feel better too!
- How am I fueling my body to meet my daily needs?
- How much sleep am I getting most nights?
- How much physical activity am I engaging in on a consistent basis?
- When was my last preventative doctor's visit?
Social
Close connections are extremely valuable for our well-being. Unfortunately, our relationships are often the first thing we neglect when life gets hectic. Individual social needs can vary greatly, but the important thing is to be mindful of is intentionally scheduling opportunities to connect with others even when you think you're too busy.
- Do I feel connected to my community?
- Am I getting enough face-to-face time with friends to fill my social 'cup'?
- How am I investing in my closest relationships with friends and family?
Mental
Mental self-care involves keeping yourself mentally stimulated just as much as caring for your mental health.
- What activities do I engage in to stay mentally sharp?
- Do I pursue knowledge about new topics that fascinate me?
- Am I practicing self-compassion in my inner dialogue?
- Do I have access to mental health support if I felt I really needed it?
Spiritual
Research suggests a lifestyle that includes spirituality is correlated with a longer lifespan and healthier habits.9 While religion is the most common example, anything that helps you develop a deeper sense of meaning, understanding, and connection with the universe can fulfill your spiritual needs.
- Do I feel like I am part of something that is bigger than myself?
- Am I engaging in spiritual practices I find fulfilling? (Mediation, prayer, or escaping to nature are just a few examples.)
- How often am I attending religious services (if applicable)?
Emotional
Emotional self-care includes activities that help you acknowledge and express your feelings regularly and safely.
- Do I have healthy coping mechanisms to deal with uncomfortable feelings like anger, anxiety, or sadness?
- Is there someone in my life I feel safe having deeper emotional conversations with?
- What leisure activities do I engage in to process my emotions independently?
After thinking through these questions, there were likely some categories where you felt contented in your answers, and perhaps others that elicited a more emotional response. Try to narrow it down to one or two of those categories, and take time to consider what specifically about those areas of your life cause you stress. Zeroing in on the what and why of your stressors can then serve as a helpful foundation for figuring out how you can implement self-care strategies to combat them.
Remember, your self-care strategies do not need to be extravagant, they are simply meant to be something you can intentionally do (or stop doing!) to feel good and manage stress. For example, if you are feeling weighed down by the barrage of negativity that comes from the 24-hour news cycle, maybe you could call a friend to go for a walk where you could talk about your feelings. Or perhaps you could watch your favorite comedy in place of the 10 o'clock news to make sure your head is in a good space before it hits the pillow. You could even set a limit on your cell phone apps where you find yourself 'doom scrolling'.
The secrets are to start small and make it a priority. Even when you are feeling overwhelmed or like you don't have time to assess your needs and engage in self-care activities, that is probably when you need it most. Kind of like emergency oxygen masks, you will be more effective and efficient in all your life's pursuits if you keep making space for self-care in your daily routine.
Want Resilience? Say Yes.
Lucy Westlake was 13 years old when she reached Denali High Camp in Alaska at 17,200 feet with her father and climbing guides. In her young life, she had already climbed to the highest point of 49 states and was 1 day and less than 3,000 feet away from smashing the record for the youngest woman to summit the highest points in all 50 states (the previous record was set by an 18-year-old).
Unfortunately, on the morning they had slated for their final ascent, another struggling climber had been abandoned near the summit, so their guides were sent away on a rescue mission. Bad weather approached while they waited, and their supplies ran low.
After 20 days on a glacier plane, walking 8 hours per day with 100 pounds of gear on her 95-pound frame, enduring -20 degree conditions, altitude sickness, and all the mental and emotional strain that comes along with such a journey, they had to make the difficult decision to walk away from their goal to reach the peak.
Lucy said this near-miss was such a crushing defeat, that she had no desire to return to Denali for another four years. But without it, she would have never gained the amazing insight she now has about failure, resilience, and approaching life with a 'yes' mindset.
She also said she never would have made it to the peak of Denali if it hadn't been for the experience she gained from her first attempt. That's right, in 2021, Lucy and her father headed back to Alaska, and without the aid of a crew or guides, reached the summit on the morning of Fathers Day of all days. At that point she was 17 years old, so she was still able to surpass the previous record for the youngest woman to reach the highest point in all 50 states as well.
With such a compelling story of grit, Lucy has been invited to speak publicly about her experience on various platforms including this podcast (if you missed last month's newsletter article on How To Podcast, you can access it HERE). She shared 5 points on resilience in the face of failure we found worthy of sharing:
- Failure is inevitable in life, how you react to failure is what matters.
- Failure is an opportunity for exponential growth.
- The only way to redefine your perceived limits is to test them, and that requires leaving your comfort zone.
- Failure is part of the journey, not an end destination. Build resiliency through small failures, so when a big one arrives, and it will, you will have a deep well of resiliency and grit within yourself to get back up and keep climbing.
- Determination achieves greatness.
So many of us get to a point in life where trying something new seems like an unnecessary risk. We feel self-conscious about the potential to make mistakes, or face public criticism. No one likes to fail, but perhaps by reframing failure as an opportunity to build resilience, we might be inspired to chase after more of the things we really want in life. In her podcast interview, Lucy's closing advice was to "Say yes to a lot of things." She said going through life with a 'yes' mindset is how she has found the most success and fulfillment in her life. While every 'yes' may not result in the success you were looking for, it's likely to deepen your well of resiliency to accomplish the success you may have never even expected for yourself.