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Stock Markets

Q2 2020 Market Rebound

Second Quarter 2020 Market Review

By | 2020, coronavirus, Covid-19, Dow Jones Industrial Average, Equity Markets, Global Markets, Investing Lessons, Investment Returns, Investor Panic, Market Corrections, Market Index, Market Volatility, Real Returns, Stock Markets | No Comments

If you are having a hard time making sense of what is going on in the economy and financial markets right now, you are not alone.  The past four months have taken investors on a dizzying rollercoaster ride, making it difficult to make heads or tails of economic data and financial market movements for investors and analysts alike.  While there…

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An economic recession doesn't mean market recoveries are far behind.

Does a Recession Mean Negative Returns?

By | 2020, Economic Growth, Equity Markets, Investment Returns, Market Corrections, News and Events, Recession, Returns, Stock Markets, US Economy | No Comments

As many industries and economic sectors shut down earlier this spring in concerted efforts to reduce the spread of the coronavirus, many economists opined that the U.S. economy faced a certain recession.  Recessions are generally defined as two consecutive quarters of negative growth in U.S. production.  But other criteria may also be utilized to declare a recession, including a sharp…

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What Now?

What Now?

By | 2020, Bond Markets, coronavirus, Equity Markets, Financial Planning, Fixed Income Markets, Interest Rates, Investing Lessons, Investment Returns, Investor Panic, Market Corrections, Market Volatility, Patience, Retiree, Retirement, Retirement Income, Retirement Planning, Retirement Savings, Returns, Risk, Stock Markets, Tax | No Comments

2020 began with the promise of continued strong economic and financial performance and a hint of uncertainty surrounding the November Presidential election.  The nation’s unemployment rate was near sixty-year lows, and labor force participation rates were near sixty-year highs.  The longest bull market in U.S. history was still running, despite concerns by some investors and analysts that it was getting…

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The coronavirus has roiled equity markets in 2020.

Market Volatility and the Coronavirus

By | coronavirus, Equity Markets, Expected Return, Market Volatility, Risk, Stock Markets | No Comments

For many investors, the greatest impediment to financial success is their failure to control two powerful emotions:  fear and greed.  Fear and greed can distort investors’ perceptions of current economic conditions and financial markets, while diverting their attention from longer term financial goals.   Of the two emotions, fear is probably the more difficult to control for most investors and can…

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2019 Market Review

2019: The Year in Review

By | 2019, Economic Growth, Equity Markets, Market Index, Real Returns, Stock Markets | No Comments

Despite a gloomy outlook at the onset of the year, 2019 proved to be a stellar year for investments and a strong year for the economy of the United States.  Following a frightful fourth quarter in 2018 that saw the S&P 500 drop 13.53% and the Dow Jones Industrial Average lose 11.8%, investors had little to be optimistic about as…

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How will investors face in 2019?

Looking Ahead to 2019

By | Bond Markets, Equity Markets, Fixed Income Markets, Investing Lessons, Investment Returns, Market Corrections, Market Volatility, News and Events, Patience, Real Returns, Returns, Speculation, Stock Markets | No Comments

After the worst year for equity markets in a decade, some investors may be asking themselves “what now?”  It is not unusual for investors to question their investment decisions and investment allocations after a year where very little seemed to go right for equity markets.  After a trying year in 2018, what does the new year hold for investors, and…

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Mkt volatility

How to Handle Stock Market Volatility

By | Investing Lessons, Investment Returns, Market Corrections, Market Volatility, Returns, Risk, Stock Markets | No Comments

Barring an extraordinary Santa Claus rally in the last week of the year, 2018 stands to be a disappointing year for domestic and international equity markets alike.  Investors have enjoyed an uncharacteristically long bull market rally that has lasted almost a decade, so the recent downward market volatility we have experienced may seem very unsettling to many investors.  It is…

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Market Volatility Can Test the Resolve of Investors Who React Emotionally

Some Perspective on Market Volatility

By | Investing Lessons, Investment Returns, Market Corrections, Returns, Stock Markets, Uncategorized | No Comments

Before the brief ten percent market correction that began on January 26th and ended on February 8th, domestic equity (stock) markets enjoyed the longest period of market calm in history.  Prior to the recent period of volatility, the S&P 500 had not retreated by 3% over one day or several days since November 4, 2016.  The streak shattered the previous…

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2017:  The Year in Review

The Year in Review: 2017

By | Investing Lessons, Investment Returns, Market Index, Returns, Stock Markets | No Comments

Heading into the year, 2017 was viewed by many investors with a great deal of trepidation and concern.  Political turmoil in the US, uncertainty in the global  economy, rising tensions in the middle east, strained relations with North Korea, and an eight year-old domestic bull market gave many investors pause for the prospects of 2017. For all the potential causes…

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Sir Isaac Newton's South Sea Bubble experience provides investors with valuable lessons.

Lessons from Newton’s South Sea Bubble Disaster

By | Investing Lessons, Market Corrections, Stock Markets | No Comments

If I were to postulate that Sir Isaac Newton (1642 – 1727) was one of the most brilliant minds the human race has ever seen, I would have ample evidence to support my position.  The English physicist and mathematician is legendary in his contributions to the advancement of mankind.  Newton is credited with inventing the reflecting telescope in 1671.  Newton…

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