Tuesday, November 5, 2024
The outbreak of coronavirus in the U.S. has led to the shutdown of a large portion of the U.S. economy. For income-focused investors, the big question is whether dividend-paying companies will sustain or cut dividends. For industries that are shut down due to government restrictions, a big question is how much federal money they receive […]
It’s not hyperbole to say that this is as crazy as the financial markets ever get. There may have been more shocking news items in 2008 (Lehman going bankrupt), but the huge daily swings we have seen in stocks and other asset classes are unprecedented. A market that has frequent, huge swings in prices is […]
Wall Street Lays an Even Bigger Egg Last week was one of the most dramatic weeks in Wall Street history. Twice the New York Stock Exchange had to halt trading because the S&P 500 reached its intra-day down limit. For the first time since the Great Depression, the Dow had back-to-back days where it moved […]
With coronavirus cases increasing, governments are advising “social distancing” to halt the spread. In short, “you can lower your risk of infection by reducing your rate of contact with other people. Avoiding public spaces and unnecessary social gatherings, especially events with large numbers of people or crowds, will lower the chance that you will be […]
“The time to buy is when there’s blood in the streets.”-Baron Rothschild Many years ago, I heard this statement: “Life is hard; however, once you understand that, it gets a little easier.” Out of your life’s many pursuits, this statement applies especially to investing your money. Most investment decisions are emotion-driven. You have heard that […]
With stocks in a bear market and potentially more selling ahead, the Fed has cut interest rates to 0% and started a new $700 billion quantitative easing program. This could cause a substantial amount of volatility in the market, but especially in rate sensitive sectors like financials. In fact, a trader just bought a large […]
To help, the Federal Reserve cut interest rates to zero, and announced a massive $700 billion bond buying program. Unfortunately, it may not have been enough. “The Fed is trying to be preemptive to calm the markets, but what’s worrisome to me is that they’ve unloaded the gun and there are no bullets left. If […]
Investors have panicked, and the stock market has quickly tumbled into bear market territory. Panic leads to poor decision making. The reactions to the coronavirus outbreak, such as canceling sporting events and sending employees home, will end up causing more damage than from the virus itself. If you stay logical and you don’t panic, the […]
On Monday, the major stock indices in the US were all down at least 7% for the day. It was the largest one-day drop since 2008, the year the Great Financial Crisis started. This time around it’s not subprime loans causing the meltdown, but a highly contagious virus and an oil price war. While stocks […]
The Only S&P 500 Stock Making a New High Monday was one of the worst days in stock market history. The Dow plunged over 2,000 points. It seemed like nothing could stop the selling. The whole world has become afraid of the coronavirus. It’s so serious that Ireland canceled St. Patrick’s Day. There’s even talk […]
