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As we move through 2022, it is essential to continue looking at the latest trends and development that could impact how the business world functions. So far this year, we have continued to see quite a bit of volatility, and there are no signs that it will slow down significantly anytime soon. As a result, it will be crucial for businesses to make the necessary adjustments before it becomes a major issue. Overall, our recommendation is to learn from the market volatility but stay focused on your long term vision and quality decision making. 

What Is Causing The Volatility?
Since the start of the COVID-19 pandemic, businesses worldwide have been forced to reconsider how they function. Not only have companies been forced to adjust to remote or hybrid work, but they are also experiencing the demand and supply shortages that are taking place. These are two major factors that can cause volatility in today’s market. Additionally with over $8 trillion dollar in economic losses just in 2020, people and business have had to adjust and learn to be more resilient. 

Another driver of volatility is unprecedented level of inflation that in the United States reached 8.5% in April 2022. This is also matched by high inflation in Europe and in other part of the world.  Inflation will raise the amount of capital that companies need and that raising prices to maintain inflation-adjusted profits is not as simple as it may seem. Companies are feeling the strain that inflation is causing and have had to make adjustments in response, which have included raising prices, completing hiring freezes, and tightening up their current positions. While these steps can help reduce the impact of inflation, they will not completely solve the issues. This is why it is essential to revisit the impact of inflation, COVID-19, and other market-altering factors regularly. This will ensure that you can adequately respond to any issues. 

Why Is It Important To Look At Volatility?
As a result of the ongoing issues with the current business climate, it will be important for companies to keep a close eye on any future changes. To help reduce the impact, it will be crucial to pay close attention to the stock market, general economic conditions, and how the industry is doing. These key factors will provide helpful information on how your company could continue to be impacted and will help determine the best way forward. While your efforts may not be able to anticipate every factor that comes into play, they can help reduce the negative impact on your business and employees. 

The volatile economy that we are experiencing results from the significant changes we have seen in the business environment over the last few years. Without proper planning, your business risks larger issues down the road. Stay up-to-date on the latest news and trends in both your industry and the economy to help alleviate these risks. 

One effective strategy to fight inflation and market volatility, is investing in your own skills and continue to train people around you as this will guarantee longer-time returns for your business as well as for your employees.