Vulnerable in the season of volatility
The fall season of volatility is here again. This year, however, stock markets may be susceptible to even more gyrations than usual, given the vagaries of the Covid-19 pandemic and its effect on economic growth, the U.S. presidential election cycle, and the massive injections of monetary and fiscal stimulus to help keep economies afloat. Most recently, we saw stock markets sell off on Oct. 2 on the news that U.S. President Donald Trump had tested positive for Covid-19 and had been admitted to hospital for treatment. But any sustained correlation between market activity and the political cycle is tenuous at best, and is typically very short-lived. So it proved to be, as markets rebounded sharply on the following Monday.
Review your portfolio before jumping in
The Dow Jones Industrial Average is reaching all-time record highs. So is the S&P 500 Composite Index – amidst a pandemic and a recession, no less. And smaller investors are jumping on the bandwagon. Should you join the fun?
The lure of gold in troubled times
Gold has in recent weeks become more interesting to investors. After a lengthy period during which an ounce of gold traded around US$1,500 per ounce, it notched up slightly after the March stock market meltdown, to around US$1,700. Since the beginning of June, though, it has been climbing steadily, edging toward a historic high of US$2,000 per ounce in the final days of July.
Get a fix on your true level of risk tolerance
Until very recently, things had been looking up in the U.S. The Labor Department reported that the U.S. unemployment rate dropped to 11.1% in June, as millions of Americans began returning to work. That helped lift investor sentiment on hopes that the economy would start to recover. But a resurgence in COVID-19 cases in the U.S. over the past couple of weeks could derail that. This past week, over 77,000 new COVID-19 cases were reported in the U.S. in a single day.
Rebalancing for recovery
The March market meltdown, bond market gyrations, repricing of assets, and the flight to safety over the past couple of months has thrown many portfolios into disarray, particularly those of the do-it-yourself variety. The turmoil is likely to be reflected in increased values for fixed-income and cash holdings in your portfolio. Likewise, your equity values will have declined significantly.
Robyn Thompson is featured in BNN’s “The Open” with host John Erlichman, discussing how retirement planning is affected by the COVID-19 pandemic and what retirees (and those ready to retire) can do to protect their nest-egg and secure their income streams into the future.
Why the urgent need for “safety” can lead investors astray
These days, we’re reading a lot about the “flight to safety” in markets and investments. It’s understandable, of course, as the COVID-19 virus pandemic spreads fear and panic through global financial markets as a nasty side effect. But is that flight to safety the right thing to do right now?
Robyn Thompson is featured in CTV’s “Your Morning” with Anne-Marie Mediwake, discussing how to handle your investments and personal finances in the wake of the COVID-19 pandemic scare.
With stock markets now into bear market territory, a global recession looming, and mob-mentality behavior prevailing in both supermarkets and stock markets, Robyn has some timely advice for investors on how to stay calm, weather the market turmoil, and even profit from new opportunities.
Stock market rout not the time for wholesale portfolio changes
The rapid spread of the Covid-19 virus (also known as the coronavirus), has hit global markets hard over the past few weeks as investors worry about the impact of the spreading contagion on global trade and corporate earnings. Stock market indexes have plunged well into correction territory (down more than 10% from recent highs), crude oil has dropped to levels last seen in 2017, global growth appears to be slowing, and with a possible recession looming, central banks are cutting interest rate cuts.
Precious metals, gems a risky way to hedge risk
The headlines are hard to miss. There’s the seemingly endless tariff war between China and the U.S. Then there’s the truly endless sabre rattling in the Middle East, most recently between Turkey and the Kurds in Northern Syria. How about the tit-for-tat oil tanker attacks and hijackings between Saudi Arabia and Iran? Brexit anyone? Efforts by Democrats to impeach U.S. President Donald Trump. Mass rioting in Hong Kong, Chile, Bolivia. Separatist sentiments rising in Canada following the election of a weak minority Liberal government. For some investors, it’s all a bit much, and many are asking if market risk has cranked up to new highs. Is now the time to switch at least some of your funds to so-called portable hard assets, like gold and gemstones, which tend to keep their value in times of turmoil? READ MORE