You May Be Worrying About the Economy Too Much
Buck up. Yes, we are facing some crises right now, but once you put things into perspective, you’ll see things may not be as bleak as you fear.


War in Ukraine. Outsized inflation. Supply chain disruptions. A lingering pandemic.
Today’s global upheavals all contribute to a sense of general economic anxiety among investors and, more broadly, the American public. The University of Michigan’s Consumer Sentiment Index — a metric that gauges how consumers view the economy and their own financial prospects — is at its lowest point since 2011.
But is the worry misplaced?
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A quick drive past a gas station might suggest it isn’t, but it also wouldn’t describe the full picture. The overall, sustained health of the economy is a reminder that we must view events with proper perspective.
Consumer sentiment currently appears to be running counter to other prominent indicators. For example:
- More people are employed as the unemployment rate ticked down to 3.6% in March.
- Wage growth is at its best rate in years.
- The stock market’s returns continue to grow at the same healthy rate they have since the middle of the last century.
These factors should not blind us to what is going on in the world. Unquestionably, the war in Ukraine is a tragedy and creating global waves, from humanitarian crises to gas pump pains. Certainly, too, inflation and the supply chain are factors that lead to volatility in the markets.
But again, we come to perspective. In the past 20 years that I’ve been a wealth adviser, for example, I’ve witnessed a vast range of economic disruptions — 9/11, the tech bubble, the Iraq War, a debt downgrade, a housing crisis and the massive ensuing recession, energy fluctuations and… well, the list could go on for quite a while. Through it all, we’re still standing — still thriving.
How, then, do we explain the lagging consumer sentiment? A few thoughts that immediately spring to mind:
1. We’re always connected
It’s not time for a Luddite screed, but there is little doubt that many Americans (maybe it’s fair to say most?) lead an always-online lifestyle that is complemented by a 24/7 news cycle — whether they want to hear the day’s headlines that often or not. Studies routinely find a link between poor mental health and overexposure to social media.
Does this mean investors and consumers should throw their modems in the trash and block out negative news stories? Of course not — the world faces serious problems and an informed public can make a difference. But by regularly “unplugging,” taking the time to get away from unproductive online stories, arguments and biased pundits, it can easily create more brain space that encourages financial thinking and decisions based on facts, rather than emotion.
2. We neglect our history
There is always a crisis in the world that holds the potential for turbulence in the market, even if it isn’t particularly notable on our shores. As discussed earlier, however, there is a long line of events that have impacted our economy but we were able to rebound from – a list that stretches back to before there was even a United States.
Yes, it’s unreasonable to expect everyone to recall a banking panic from the late 19th century, but the Great Depression of nearly a century ago, gas shortages in the 1970s and the more recent 2008 financial crisis remain well-known examples of times that we weathered worse economic periods. Learning and remembering our history are crucial factors to building the perspective that helps us place current events in better context.
3. It’s human nature
While many of us are glass-full types, overall, we’re a negative species, with a tendency to focus more on negative interactions, memories and news. In prehistoric times, this behavior might have been a survival mechanism, but today, research suggests it can adversely impact decision-making and relationships.
Often, the advisers at my firm play the role of psychologist, not in a medical sense, but by digging into and breaking through clients’ negative financial attitudes and behaviors. Today, it’s simply part of the job, just as it is to maintain that one important sense: perspective.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Matt Helfrich is President of Waldron Private Wealth, a boutique wealth management firm located just outside Pittsburgh, Pa. He leads Waldron's strategic vision, brand and value proposition and overall culture of the firm. Since 2002, Helfrich has served in a number of roles including: Chief Investment Strategist and Chief Investment Officer, where he was instrumental in creating and refining Waldron's investment discipline.
-
How to Add Your Driver’s License to Apple Wallet
Turn your iPhone or Apple Watch into a digital ID — here’s where it works and how to set it up.
-
Taylor Swift Can Shake Off Wedding Costs — But Most Couples Can't: The Price of Getting Married in 2025
From engagement rings to bachelor parties, here's what it really costs to get married in 2025.
-
Here's Why Munis Aren't Just for Wealthy Investors Now
Buyers of all levels should be intrigued by municipal bonds' steep yield curve, strong credit fundamentals and yield levels offering an income buffer.
-
I'm a Financial Planning Pro: Do Your Family a Final Favor and Write Them a Love Letter
Specify your preferences in this personal document that shares your wishes on how you want to be remembered and celebrated. Your family will thank you for easing an emotional time.
-
The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills Matter
Graduates entering the workforce trust human advisers more than AI tools with their financial planning. But AI can still enhance the client/adviser relationship.
-
I'm a Wealth Adviser: If You're a DIY Investor, Don't Make These Five Mistakes
Even though you may feel confident because of easy access to investing information, you may be making mistakes that could compromise your long-term performance. Here's what you should know.
-
Building a Business That Lasts: The Critical Steps to Avoid Blunders
'Another Way' author David Whorton offers advice on how to build an 'evergreen' business that endures by avoiding common pitfalls that can lead to failure.
-
I'm a Financial Pro: Why You Shouldn't Put All Your Eggs in the Company Stock Basket
Limit exposure to your employer's stock, sell it periodically and maintain portfolio diversification to protect your wealth from unexpected events.
-
How Will the One Big Beautiful Bill Shape Your Legacy?
The One Big Beautiful Bill Act removes uncertainty over tax brackets and estate tax. Families should take time to review estate plans to take full advantage.
-
Should You Claim Social Security Early or Late? A Financial Adviser Weighs In
There isn't a wrong age to start claiming Social Security, but there are factors that everyone should consider to avoid leaving money on the table.