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How Would Your Investments Have Fared If You Had Gotten Out Earlier?

There are undoubtedly millions of investors out there who still are heavily invested in stock markets. They enjoyed the gains they’ve seen over the past several years, with both the Dow Jones and the S&P 500 reaching all-time highs on a consistent basis. As a result, the number of 401(k) millionaires in this country has never been higher. But now that stock markets are crashing into bear market territory, many of those investors who remained in stock markets are [...]

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Markets Are Still Unsettled, and the Fed’s Actions Continue to Backfire

The bad news just keeps getting worse for investors, as stock markets continue their slide. The Dow Jones lost 10% today, dropping over 2,350 points to end the day. Not even an unprecedented monetary policy action by the Fed was able to stop the loss, so investors who are trying to stick to stock markets have their work cut out for them. Dow futures were down over 1,200 points overnight last night after President Trump announced a ban on all [...]

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How the Democratic Primary Is Shaping Up

After last night’s Democratic primaries, things aren’t looking so hot for Bernie Sanders, once the presumptive nominee for the Democratic Presidential nomination. Joe Biden currently leads Sanders in the delegate race, about 860 to 710. That’s not an insurmountable lead, but the change in momentum that occurred after Super Tuesday is looking to favor Biden and not Sanders. What will really determine the direction of the campaign is the result of next Tuesday’s primaries. 577 delegates are up for grabs [...]

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Markets Are Going Crazy: Are Your Investments Safe?

If you thought the last two weeks were bad for stocks, they just went from bad to worse. The Dow Jones dropped almost 1,900 points to start the day, an over 7% drop. The S&P 500 dropped 7% too, triggering the New York Stock Exchange’s first circuit breaker, the first time that has happened since the 2008 financial crisis. That’s not good for the outlook for stock markets. For those not familiar with stock market trading curbs, the NYSE instituted [...]

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What Is the Market Outlook for the Next Week?

With the Federal Open Market Committee (FOMC) moving last week to cut its target federal funds rate by 50 basis points, all eyes are on next week’s FOMC meeting to see what the Fed does next. The expectations are for the Fed to continue cutting interest rates, as other central banks such as the Australian and Canadian central banks have done the same. We’re seeing the increased likelihood of another round of interest rate cuts and eventually quantitative easing [...]

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Events of the Last Two Weeks Should Have You Looking Over Your Investments

Last week saw stock markets having perhaps their worst week since the financial crisis. All major stock markets entered correction territory in record time, with the Dow Jones, S&P 500, and Nasdaq all losing over 10% of their value in a little over a week. The Dow Jones suffered its largest single-day points drop ever, and it’s very likely that the only thing keeping markets afloat right now is a little support from the Plunge Protection Team. The twists and [...]

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Is the Plunge Protection Team Hard at Work?

If you’re not familiar with the President’s Working Group on Financial Markets, you should be. Also known as the Plunge Protection Team, the group works behind the scenes to shore up financial markets. Consisting of the Treasury Secretary, Federal Reserve Chairman, and the Chairmen of the Securities Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), the Plunge Protection Team covers all the major financial firms, exchanges, and markets. And when markets are threatening to collapse, it pulls out [...]

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Unexpected Fed Rate Cut Can’t Stop Stock Market Losses

In a move that hasn’t been made since the financial crisis, the Federal Reserve this morning announced that it was cutting its target federal funds rate by 50 basis points, to 1 to 1.25%. The move came just two weeks before the Federal Open Market Committee was scheduled to meet again, at which the Fed was expected to cut rates. In fact, markets are generally expecting three to four rate cuts this year. Now that the Fed has announced [...]

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Why Does Gold Sometimes Drop in Price During a Crisis?

Last week was an absolute bloodbath for markets, as stock markets shed trillions of dollars worth of paper wealth. The Dow Jones lost over 3,500 points over the course of the week, prompting the Federal Reserve Chairman to pledge the Fed’s full support to markets on Friday afternoon. But that failed to stem markets’ fall, and there’s every indication that this week could see even more losses. One of the curious things to notice was that, although gold initially shot [...]

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Think the Coronavirus Won’t Affect the US Economy? Think Again

There seems to be a great deal of complacency among many in the United States about the effect that the coronavirus will have on the US economy. Thus far it’s been treated as an issue that only affects China, and whose effects on the US economy will be limited. But the US and Chinese economies are so tightly intertwined that anything that happens in one country affects the other. It’s only a matter of time before the disruption to [...]

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