A recent article in Bloomberg discusses the recent market turmoil within the context of past market downturns, highlighting an ongoing debate about whether the worst of the downturn is over. “At the heart of the debate is a phenomenon known as a bear-market rally—a period during a protracted downward trend in which equities stage a short-term revival.” If those on the negative side of the debate are correct, the article says, “investors can expect more… Read More
By Justin J. Carbonneau The recent declines in the market along with the overall shutdown of the economy may have many investors feeling a little hopeless and paralyzed—all completely normal feelings in times like these. However, periods like this also present opportunities for those who have the self-confidence to look closely at certain parts of their finances and overall financial plan. To that end, I’ve come up with 8 strategies that could improve short- and… Read More
A recent article in The Wall Street Journal reminds investors that there’s a premium attached to the equities they own—to reward them for the additional risk they’re assuming compared to holding safer securities such as bonds. “Sometimes that risk comes due, and now is one of those times.” The article reports that global stocks have outperformed bonds by 3.2 percentage points a year since 1900 and that, in theory, the outperformance is “justified as reward… Read More
“After a 40-year-long shift from traditional pensions to individual 401(k) retirement accounts, Americans’ financial security is now defenseless against whatever crisis comes along,” according to a recent article in Bloomberg. The article cites a recent research study that found late baby boomers (now 55 to 60 years old) have saved far less in 401(k)-style contribution plans than their older cohorts. “This result was puzzling and perverse,” the article said, adding, “The more time Americans spent… Read More
A recent CNBC article provides insights and analysis of the coronavirus-related market sell-off. Here are some highlights: While many sounded alarms when COVID-19 emerged in China, the article says “the swiftness of the economic shutdown and violence of the U.S. market’s 30% drop in a month were not foreseen by many who had not already been wary of the market for other reasons.” Analysts have been comparing historical periods of global pandemic and coinciding market… Read More
A recent article in Forbes compares the current investing backdrop to that of 9/11 and the financial crisis of 2008. Following are highlights from the article: Current situation versus 9/11: “From a stock market perspective, comparisons to 9/11 are not entirely apples-to-apples,” the article says, but adds that the level of fear and uncertainty “does have parallels with today’s fears of a microorganism about which we know little.” Today’s economy is significantly stronger than it… Read More
Last week, Bridgewater founder Ray Dalio said he predicts US companies will lose $4 trillion because of the coronavirus pandemic. This according to an article in Chief Investment Officer. “What’s happening has not happened in our lifetime before,” Dalio said during an interview with CNBC, adding, “There’s a need for the government to spend more money, a lot more money.” Dalio argued that the impact of the pandemic will be greater than people think, and… Read More