As we inch our way toward Election Day 2020, we are receiving a natural increase in questions about the impact this will have on markets and portfolios. First and foremost, no matter what the polls and forecasts are saying in advance, we never know the outcome of an election until the votes are counted (as the last election clearly demonstrated).
On the heels of global markets rebounding sharply in the month of April, there is a growing sentiment in the financial media that markets are not accurately reflecting the reality we are all living through. As COVID-19 continues to spread and alter our way of life, both the human and economic toll continues to mount.
Buckingham recently launched a video series called “Ask Buckingham” to address common questions and concerns about the state of financial markets. Through conversations with members of the Buckingham Investment Policy Committee and research team, this series seeks to give some perspective on the current state of things, historical context around prior crashes, why having plans before and during a crash is so important, and the behavioral challenges market crashes present us with.
It goes without saying that we are all trying to get used to a new reality. For those of us in the working world, it is a regular occurrence these days to have conference calls interrupted by children and dogs barking in the background. This is now more of an expectation than an annoyance.
As the coronavirus “COVID-19” makes its way around the globe, people are scrambling to wrap their arms around the latest epidemic and what it means. Thus far, it has reached 109 countries and appears to be headed for more. The overwhelming majority of cases to date have taken place in China, the country of origin, and it remains to be seen how effective containment efforts will be elsewhere.
Headlines today are centered on the sharp market drop around the globe, which is being tied to the increase in reported Coronavirus (COVID-19) cases outside of mainland China. Over the weekend, South Korea, Japan, Iran and Italy all saw a surge in cases.
The current coronavirus breakout seems to be on everyone’s minds, and rightfully so. As the number of infected people continues to grow, so might some of our anxiety about the spread and potential impact of the virus. While we don’t know how many people the virus will infect and the length of this viral cycle, we do know that you may have some questions about how this might impact your investments.
Just like that, the 2018 tax changes that were supposed to be mostly permanent have been altered. In the following paragraphs, our associate financial planner, Justin Gabriel, breaks down the pertinent details of the new law that may be applicable in the years ahead.
Often as investors, we are forced to endure prolonged periods where it feels like our investments are stuck in neutral. These stretches of time can test our patience and resolve every bit as much as when markets are plummeting. The natural instinct is to believe that something must be broken, so we are tempted to shake things up a bit.
It was hard to miss the headlines about escalating trade tensions between the U.S. and China last week—and hard not to notice the up-and-down market activity that went along with it. But what, if any, long-term impact does trade policy have on the economy and, by extension, our portfolios?