When will the markets hit bottom? Daniel Nevins of Nevins Research covers what the market modelers are projecting. In the meantime, many investors are protecting their portfolios by re-balancing them. The Global Chief Investment Strategist for BlackRock, Mike Pyle, discusses the most important factors to consider. The Federal Reserve is trying to help stabilize the markets. But will it be enough? Liz Ann Sonders of Schwab describes their efforts to ameliorate the coronavirus market crisis.
Coronavirus Lesson #1 For Investors: Beware Predictions Of Market Bottoms — The eyes-open approach says to be wary of claims that “we’re very close to a melt-up” or “the bottom may be closer than you think” or “we’ve probably seen the worst.” No doubt, market volatility brings opportunities. But Daniel Nevins of Nevins Research says we’ll need more clarity about when we can once again claim “the business of America is business.” That’s at least weeks and possibly many months away. Read more…
Why BlackRock Favors Re-Balancing Portfolios — As we await signs coronavirus infections are peaking and decisive policy actions are stabilizing the economy and markets, it may be prudent to start leaning against market moves through re-balancing. The right time to do so will vary by investor and should take into account considerations such as transaction costs and market liquidity. Read more…
Triage: Throwing Everything At The Virus — The questions continue to outnumber the answers, while the virus continues to infect people, markets and the economy. Monetary and fiscal stimulus can serve as triage; but they’re not the cure. Liz Ann Sonders of Schwab takes an overview of how the coronavirus is affecting the markets and what the Federal Reserve is doing to try to ease the crisis. Read more…
John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller