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Now What the Hell Do I Do?

The coronavirus pandemic has triggered unprecedented levels of economic turmoil and stock market volatility. It’s very difficult to stay the course when no one seems to know what lies beyond the horizon. There are steps you can take to help your investment portfolio survive the Covid-19 pandemic. “In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”  —Warren Buffett I think it’s…

The Market Week in Review

The U.S. stock market continues to fall over fears of the coronavirus and its impact on the global economy.  Interest rates were highly volatile over the course of the week but ended up little changed as the 10-year treasury yield only fell two percentage points and currently sits at 0.92%.  Meanwhile the spread between the 10-year treasury yield and the 2-year treasury yield continues to widen and currently sits at 0.55% as the federal reserve rate cuts forced shorter-term rates substantially lower.  The price of gold fell 2.7% to $1,490 an ounce as stronger demand for the U.S. dollar has…

The Market Week in Review

After Trump announced a national emergency today and government stimulus, stocks soared over 9.0%.  However, this only mitigated a portion of the stock markets large losses on the week as major indices still finished down over 8.0%.  Interest rates moved higher on the week with the 10-year treasury yield rising from 0.71% last week to 0.95% today.  The price of gold fell over 8.0% to $1,531 an ounce as investors desperate for cash leave the haven metal.  The price of crude oil fell nearly 20% on the week to $33.36 a barrel amid the collapse of talks between members of…

Monthly Market Review – March 2020

Highlights The U.S. economy continues to grow, however, has shown some indications of a potential slwodown. The stock market continues to rally despite headwinds from an ever-escalating trade war between the U.S. and China. Falling interest rates has the bond market considerably higher.  However, the spread between interest rates is virtually flat and even inverted in some cases. Economic Review The U.S. economy has shown some indications of a moderate slowdown in growth.  In the second quarter of 2019 GDP grew at an annualized rate of 2.0%, its slowest in five years.  However, over the past year real GDP (i.e….

Monthly Market Review – February 2020

Highlights The U.S. economy continues to look strong despite coronavirus fears, as they have yet to materialize in economic data. However, the U.S. stock market has priced-in these fears as they dropped over 8.0% during the month of February. Interest rates are also falling as the 10-year treasury yield dropped 38 basis points to 1.13%. Economic Review The U.S. economy continues to look strong despite worries of the coronavirus as its impact has yet to materialize in economic data.  Real GDP (i.e. inflation-adjusted) continues to grow at a stable 2.3% year-over-year growth rate.  The U.S. also continues to have a…