June, 2022

An Uncertain Market

Stocks experienced wild swings last week, in part, due to ongoing uncertainty over economic health and the path of inflation. Investors seemed conflicted when interpreting the data, in some instances viewing economic strength as a negative since it may mean more aggressive rate hikes from the Fed.

Illustrative of how this uncertainty has played out, stocks surged higher on Thursday despite comments from Fed Vice Chair Lael Brainard indicating it’s unlikely that the Fed will pause on rate hikes. Then on Friday, stocks dropped as a better-than-expected jobs report raised concerns about monetary policy.

Strong Job Growth 

The U.S. economy added 390,000 jobs in May, a slowdown from recent months but higher than consensus estimates. Job gains registered in several categories, led by leisure and hospitality, professional and business services, and warehousing and transportation. The retail sector lost jobs.¹

The unemployment rate remained unchanged at 3.6%. Wage growth cooled off, with a 12-month increase of 5.2%, down from April’s year-over-year jump of 5.5%. Finally, the labor participation rate ticked higher again, reflecting how job availability is helping to pull Americans off the labor-market sidelines.²

Investor Sentiment

Over the past few weeks, we’ve come across some charts and visuals that aren’t getting enough attention because of the media’s preference for doom and gloom. So, we wanted to share these with you followed by some brief commentary to offer an alternative to the perpetual apocalypse forecasts.

Above is the Fear and Greed Index. As the graphic shows, "extreme fear" or "fear" are the dominant feelings as of late. On the surface, this may appear to be a cause for concern, but there is a funny saying that “The market has a way of disappointing the greatest number of people.” We have found this to be quite true as the next chart shows.

There is actually plenty of data to support the fact that the market typically turns when fear hits its peak. As we can see in the graphic below, in the year that follows a “sentiment trough” (though it remains to be seen if this is the trough), subsequent 12-month returns have averaged +24.9%! If nothing else, this provides an important reminder that once the market turns, it does so quickly which is why staying invested is so important.

Earn 9.62% With I Bonds

Enjoy Less Stress and More Success on Your Summer 2022 Family Vacation

Have you ever come home from a vacation and wished you could have a do-over? Maybe you were exhausted from overbooking activities, or perhaps you felt like you were constantly fighting rather than connecting with your kids.

Regardless of whether you're touring the Grand Canyon, or visiting grandparents - the traveling, disruption of routine, and all that pent up excitement can easily reach a boiling point if you don't plan ahead.

Vacations are supposed to be fun for the whole family, so before you pack your bags, take a moment to read these creative tips from Aha! Parenting to maximize the joy and minimize the tears and tantrums on your next vacation.

BEFORE YOU GO

Manage Expectations - No different from you and I, kids experience stress in uncertain situations. You can help them feel better equipped to manage that stress if you adequately prepare them for what to expect on your vacation. One fun idea is to create a little picture book to preview what will happen each day. Nothing elaborate, even just taping a few printed out photos in a notebook could work. You could invite your kids to add their own drawings in the notebook of what they think they will see each day to help build positive anticipation and conquer fears of uncertainty. This trick might be especially helpful if you plan to visit family members they haven't seen as often during the pandemic.

Make Space in the Suitcase for Sleep Supplies - Getting good sleep is kind of a prerequisite to enjoy any day, but especially action-packed vacation days. You never know how loud or bright your sleeping quarters might be when you arrive at your lodging, so coming prepared with your own blackout curtains and a white noise machine can help everyone stay in bed a little longer and sleep a little sounder.

Plan for the Plane - If you are flying to your destination, plan to arrive early enough to the airport to allow time for everyone to stretch their legs and use the restroom/change diapers before cramming onto the plane. You could make the plane even more special by bringing along small wrapped "presents" - books, coloring supplies, puzzles - for each child that can be pulled out when their patience for sitting is wearing thin. Make sure to include some sugar-free lollipops to suck on during take-off and landing to help equalize the air pressure in their ear drums. It may be unusual, but you might even want to pack some blue painter's tape that you could use to tape up a small blanket fort over your child's seat.

WHILE YOU'RE AWAY

Stay on a Schedule - As much as you can, try to maintain a schedule and meal plan your kids will feel familiar with. Vacation is a time to indulge but beware of those potential sugar crashes that may come, and if necessary, talk with grandparents in advance about limiting treats. While it is nice to try to have family meals all together, don't be afraid to feed your kids early so there is less pressure to keep them sitting at the table while the adults want to linger and talk. You need a chance to unwind, too!

Limit Your Itinerary - It is tempting to try to pack every vacation day with as many fun activities as possible, but you'll likely get more enjoyment out of planning just one big event per day. Leaving your schedule more open can help you build in a sense of routine that allows for physical activity to burn off happy energy, and intentional times to rest and decompress.

Prioritize Connection - Getting away from the stressors of work and home life should hopefully leave parents feeling more relaxed, fun, and emotionally available for their family. Before you lay down under the umbrella to read that book, take 5 minutes to hop into your kid's water fight, or throw an impromptu poolside dance party. Start and finish every day snuggling your child and talking through what to expect for the day ahead or what their favorite part was of the day they just experienced. 

“Summer will end soon enough, and childhood as well.” - George R.R. Martin

The Five W's Guide to Summer Skin Care

Kids are finishing up their school years and the bugs are back to biting here in GTS' home state of Minnesota, which means summer must be here!

With sunny days ahead, you probably expect to be spending more time outdoors in the coming months. But before you fire up the grill, dive off that dock, or dig into your garden, remember to take precautions to care for your skin. While some sun exposure is good for us, it is important to be aware of the potential risks associated with too much time in the sun, and how best to protect yourself and your family from harmful UV radiation and a dreaded sunburn.

Read on for your who-what-where-when-why guide to treating your skin right this summer!

WHO

YOU! Yes you. That's right, everyone should take measures to protect their skin from UV radiation, regardless of your skin's degree of sun sensitivity or your ethnicity.³

If you are someone with fairer skin, moles, tends to burn easily, or have a family history of skin cancer, you are especially advised to plan ahead for prolonged sun exposure.⁴

Additionally, even if your skin's characteristic response to the sun is a tan rather than a burn, if you spend a lot of time outside recreationally or for your job, you are still at a higher risk for adverse outcomes.⁴

WHAT

What should you do to properly protect your skin from harmful UV rays? The CDC breaks it down into three categories: 

• Use Sunscreen - Broad spectrum sunscreen with a sun protection factor (SPF) of 15 or higher should always be used in combination with the other protective methods listed below. Of course, the higher the SPF, the more it will protect against UV rays. Remember to apply your sunscreen 30 minutes prior to going outside, and reapply at least every 2 hours - more frequently if you are perspiring or swimming. Don't forget to lather up those overlooked areas, like your ears, lips, and hairline.⁴
• Wear Protective Clothing - Wearing lightweight pants and long sleeves can be an easy first line of defense for your skin if summer temperatures allow. Particularly when it comes to your head, neck, and face, a wide brimmed hat and sunglasses can go a long way to prevent damage to your skin and corneas.⁴
• Seek Shade - While this is not the number one protective method, when combined with the above strategies, shade becomes a powerful method of skin protection. In quality shade, you can reduce your exposure to UV radiation by up to 75%.⁵

WHERE

Obviously, if you are outside, the sun's rays can reach your skin. UV rays will reflect off of certain surfaces, such as water, concrete, sand, and snow, so it is important to be mindful of the fact that you are more at risk of sunburn in those environments. That's right, you can even get a sunburn while skiing.⁴

WHEN

A lot of people think the only time they need to apply sunscreen is when they are laying out on a beach, intentionally going for that summer glow, but recent data indicate that most sunburns occur in contexts unrelated to intentional tanning. You should be thinking about your skin protection when being physically active, on cloudy days, and even when driving.³ During the summer months, the sun is most intense between the hours of 10 am and 4 pm, so if you will plan to be out during this window, pack your SPF 15. 

Another important "When" for parents to consider is when to start teaching your kids about sun protection. According to Dr. Barnett S. Kramer, a cancer prevention expert at NIH, "The time to really start sun protective behavior is not when you reach adulthood, but years before. The message to parents is, now is the time to start protecting your child against skin damage from sun overexposure, when your child is developing sun exposure habits and when they have many more years of potential sun exposure ahead of them.” Among other skin-protecting habits, this includes teaching children and teens to avoid the use of tanning beds.⁶

WHY

Too much skin exposure allows UV rays to reach your inner skin layers. You are probably familiar with the immediate impact of this phenomenon - sunburn.⁴

Signs of sunburn include:

• Red, painful skin
• Hot skin that can also lead to chills and goose bumps
• Itchy, peeling skin - this is your body's way of shedding dead skin cells.
• Blisters
• Dehydration

Thinking more long term, excessive sun exposure and frequent sunburn can lead to more permanent issues such as:⁴

• Early Aging of the Skin -This will present itself through dark spots, and wrinkled, tight, or leathery skin. 
• Lowered Immunity - When your skin gets burnt, white blood cells help create new cells. This leaves your immune system more vulnerable.
• Eye Injuries - UV rays can damage your corneas which may lead to blurred vision and cataracts. If left untreated, these problems could lead to blindness.
• Skin Cancer - Of course, the most common concern when it comes to sun exposure is the potential for skin cancer. Each year, more than 2 million people are treated for 2 types of skin cancer: basal cell and squamous cell carcinoma. These cancers are seen in both older and younger people, and they’re rarely life-threatening. Melanoma is a less common but more serious type of skin cancer that can spread to other parts of your body, and is diagnosed in more than 68,000 Americans each year.⁶

Despite the risks of sun exposure being quite widely known, a large proportion of adults continue to employ minimal strategies to mitigate those risks. We hope these reminders keep you out of the doctor's office with these diagnoses, and spending more time living your best life.

Simple Guide to Creating a Gratitude Journal Entry

Zig Ziglar stated, “Gratitude is the healthiest of all human emotions. The more you express gratitude for what you have, the more likely you will have even more to express gratitude for.” What a wonderful phenomenon this is to put into practice.

If you are new gratitude journaling or even a journaling veteran, following this step-by-step guide to creating a gratitude journal entry may be helpful. Give it a try and watch your positive experience of life increase.

A winning formula to gratitude journaling:

1. Set aside 5 minutes of your busy day - try to find a place where you can be alone with your thoughts. This could mean sitting in your car before picking up your kids or going in to work, or perhaps it could mean turning off the TV even 5 minutes early before you go to sleep at night. 
2. Take out a notebook (preferably your GTS Financial journal – self-promoting plug 😉) and pen.
3. Close your eyes and take three deep, calming breaths. Breathe in, to the count of 4, and breathe out to the count of 8. Release from your thinking any stresses of the moment and concentrate on your breathing. Then open your eyes. 
4. Think about your life and all of the things you are grateful for. Rapidly record a list of ‘gratitudes’ in no particular order and with no particular ‘level’ of importance. (For example, clean water and heat in the winter repeatedly make my list.)  Take only about a minute to create this list.  
5. Next, review your list, choose one of your entries to write about today, and circle it.
6. Pause and think about the item you circled - allow yourself to sit with your thoughts for a minute or so until you feel that sense of gratefulness which elicits a bit of emotion. 
7. At this moment, start writing.  Write about why you are grateful for what you circled. Capture your emotion using descriptive words helping to embed the attitude of gratitude in your spirit.  
8. When you have completed your writing, smile and close your journal for today. 😃 

Bonus tips (no extra charge💲)

Three simple ways to enhance your gratitude journaling: 

• Play soft, calming music 
• Set aside more than 5 minutes for your practice 
• Set your space up to be calming to you; maybe have some potted plants around your journaling space, use calming essential oils in the room or light a candle  

One last parting thought as you continue your gratitude practice....

Gratitude turns what we have into enough!  -Aesop 

Enjoy!

Footnotes and Sources

^{1. CNBC, June 3, 2022}

^{2. CNBC, June 3, 2022}

^{3. Progressreport.cancer.gov, April 2022}

^{4. Familydoctor.org, September, 2020}

^{5. Cancer.nsw.gov, June 2022}

^{6. Newsinhealth.nih.gov, July 2014}

^{Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.}

^{The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.}

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