What is the best approach to the plunging markets? There is no one-size-fits-all answer, as Mark Riepe of Schwab explains. Panic selling should be out of the question, according to Bank of America. CNBC illustrates how those who sell during market downturns lose out in the long run. Is a U.S. recession imminent? The probability is rising, as shown in the Bloomberg Economics model used to predict them. Reade Pickert, Yue Qiu and Alexander McIntyre cover the range of possibilities for the next 12 months.
Market Plunges On Coronavirus, Oil-Price Fears — Major U.S. equity indexes are well into correction territory (that is, down 10% or more) and are close to entering a bear market, generally defined as a drop of 20% or more. At Monday’s close, the S&P 500 Index was down 18.9% from its recent peak, and the Dow Jones Industrial Average was down 19.3%. While there is no easy answer for how to respond to an event such as coronavirus, Mark Riepe of Schwab offers several suggestions. Read more…
When You Sell During A Panic You May Miss The Market’s Best Days — During times of high volatility, it can be tempting to get out of the market, but Bank of America said this can cost investors a lot over the long term. Looking at data going back to 1930, the firm found that if an investor sat out the S&P 500′s 10 best days per decade, total returns would be significantly lower than the return for investors who waited it out. Read more…
U.S. Recession A Coin Toss As Chances Climb To 53% Within Year — Bloomberg Economics created a model to determine America’s recession odds. The chance of a recession within the next year now stands at 53%, the highest reading since the U.S. exited the Great Recession in June 2009 and significantly higher than the 24% seen in the prior month. Read more…
John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller
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