It was another week for the history books. Stocks gained almost 20% in four days. Employment dropped the most in history. The number of cases of the COVID-19 virus in America topped those of China. And President Trump is thinking of sending people back to work as early as Easter. If you stick with history, then technically, the Dow Jones Industrial Average had its fastest bear market on record. A dizzying 39 % decline (intraday) followed by a 20% gain in less than a week. However, I believe it is too early to call an “all clear” in the equity…
Insights & Advice
Bill Schmick
An economic game plan
Now that Congress and the Federal Reserve Bank have fired the first salvo of relief spending, investors are wondering how long the trillions of dollars in aid will take to actually do something to alleviate some of the losses to the economy. Administration officials believe that the cash payments to Americans should start arriving within the next three weeks. That said, most economists expect the country will fall into recession in the second quarter. That begins next week. No one knows how deep of a decline we will ultimately suffer, but suffice it to say, it will be a shock…
An old dog learns new tricks
COVID-19 has upended my life. Like so many other elderly workers, I am at risk, according to the government, the media and the medical community. As a result, if I want to avoid getting sick or dying, working from home is my only option. When I made that decision last Friday, I didn’t think it would be a big deal. After all, I have worked at home before (when I was sick or recovering from one of my many surgeries). But as I am in day four of this self-imposed isolation, I am learning that, at least for me, my…
Markets get a relief rally
Financial markets worldwide took it on the chin this week. The damage was severe and here in the U.S., we still don’t know the extent of the damage that will be inflicted on us by COVID-19. Despite Friday’s rebound, the coast is not clear for investors. “Limit down,” “limit up;” it has been a long time since investors have had to contend with these issues. Circuit breakers were designed to help ensure orderly markets and this week they went into action no less than three times. About the only good thing one can say about this stock market rout is…