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Weekend Reading: Volatility is Not Done

Weekend Reading: Volatility is Not Done

| June 12, 2020
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Markets see-sawed this week as cases of Covid-19 spiked in certain states around the country.  As local economies re-open I think it's fair to expect an increase in cases. Everyone will obviously be watching the impact that this takes on the healthcare system--but also it's affect on government policy.  Will this cause governors to re-think the loosening of distancing restrictions for businesses?  The summer months may provide an indication if we will have a gradual re-opening or a disjointed open/close/open status.

Thursday so the Dow's largest sell-off since March.  Friday saw a small bounce in the other direction.  I would expect more volatility to come.

Here's my weekend reading:

Investors Reassess the Pace of the Recovery -- Cetera Investment Management

  • Market sentiment has been focused on an optimistic V-shape recovery.

  • Cautious tones from economists and a rise in virus cases is shifting sentiment.

  • We continue to expect a U-shape recovery and increasing market volatility.

Midyear Outlook: Recovery on the horizon -- Capital Group

  • Because this economic decline is policy driven, a solid recovery is likely as lockdowns end.

  • Easy monetary policy, aggressive fiscal policy and zero-bound interest rates should continue to support equity markets.

  • Upgrading fixed income allocation is important as rates are likely to remain lower for longer.

Building resilience: What it means for retirement savings -- BlackRock Blog

  • As the economic fallout from COVID-19 threatens peoples’ livelihoods and erodes their short-term savings, it follows that their long-term financial security is also at-risk.
  • If we want to provide millions of American workers with a secure retirement, we must focus our efforts on creating new, modernized solutions that seek to provide the opportunity for guaranteed income where employees are already saving.

  • Behavioral finance must also be addressed inline with investments offerings

Have a restful weekend.

Jason

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