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The One Thing Americans Fear
What happens when people don’t have skills, don’t have savings and don’t invest in their health because pill-popping is all you need?
Investors Open Up Their Wallets as the Economy Opens Up: But V Isn’t the Only Letter in the Alphabet
What a week equity investors had.
The Dow Jones Industrials rose a robust 2.56% last week. The S&P 500 rose a resounding 3.4%. And the never-not-leading Nasdaq Composite skyrocketed 6% higher.
That’s what I call getting it while you can, which is what I advised investors do last week.
While markets look crazy soaring every week, initial unemployment claims rise by an average of 4,100,000 per week; and benchmarks shot even higher last week as the Bureau of Labor Statistics reported 20.5 million jobs were lost in April and the nation’s unemployment rate leapt to 14.7% (wink, wink, BLS admitted it’s likely 5 percentage points higher, but seasonal and other haircutting, face-saving, adjustments wouldn’t let that headline fly), they may be right to pat themselves on the back.
That’s because the “V-shaped” recovery investors expect is self-fulfilling. I’m not talking about the economy’s recovery. I’m talking about the market’s recovery. It’s V-shaped, for sure
Call it confirmation bias.
As investors see more bad news, they see it getting closer to being the worst its going to get and that means we’re closer to turning around and that means buy, buy, buy. They see the economy opening as confirmation we’re on the other side of lockdowns, and stores and businesses opening as a reason to buy, buy, buy. Everything bad to do with the pandemic is behind us is what optimistic investors believe.
That’s confirmation bias in action.
That’s why the market’s experienced a V-shaped recovery.
More importantly, they say better than expected earnings keeps confirming their biases.
Look Out Below: The Mortgage Market Is About to Revisit 2008 Crisis Woes
If you thought the worst of the financial crisis was way behind us, you’re about to get a rude awakening.
Mortgage Massacre 2.0 is right around the corner.
How to Set Up a Realistic Monthly Budget
Setting up an effective budget can be tricky, but it doesn’t need to be. Mark Ford is going to share some helpful tips for creating a budget that works for you.
Where All the Money’s Going in the Market Is Where You Should be Going Too
According to the Investment Company institute (ICI), year-to-date, investors have taken some $291 billion out of mutual funds and exchange traded funds.
But that’s not the whole story.
The ICI’s numbers represent net flows, meaning there were inflows, but they were dwarfed by outflows.
The story isn’t about net outflows, it’s about where the money went that flowed into the market.
Here’s where most of the money went and why you should follow it…
Mailbag: Don’t Forget to Live
Sorry, friend, but the news is true. This life of ours will kill us. But that shouldn’t stop us from living…
My No. 1 Takeaway From the Coronavirus Crisis
If this coronavirus pandemic has taught us anything, it’s that there’s a massive divide between two parts of our nation.
Capital Wave Forecast: Get It While You Can
I’m going to let Janis Joplin tell you what to expect and what to do with equity markets this week and this month.
“Get it while you can.”
That title lyric was on Janis’ 1971 posthumous album Pearl, and it’s what investors need to remind themselves to do.
Because the dramatic bounce off the March lows has maybe a little more to go, at least for some stocks, before markets give up the ghost of depressions past and head back down to earth, maybe below, meaning towards the fiery place way under our feet.