Broker Check

Integrated Insights - Week of August 3, 2020

August 04, 2020

Investment markets continue to ebb & flow as Washington continues to hash out further stimulus.  As November elections come into view, expect more headline trading.  

With summer winding to a close over the coming weeks, it's still a good time to use time social distancing to work on the details of your financial plan--Revisit spending needs, adjust savings rates, figure cost for home projects, etc.

Here's what I'm reading this week:

Weekly Commentary -- Focusing on Factors -- BlackRock

  • Activity Restart - Economies are slowly restarting, but at different paces. BlackRock are tracking the evolution of the virus and mobility. The longer it takes for activity to restart, the more cracks might appear in the financial system and productive capacity.

  • Policy Revolution - Aggressive policy action was/is needed to cushion the devastating and deflationary impact of the virus shock. In the medium term, however, the blurring of monetary and fiscal policy could bring about upside inflation risks. It’s crucial to have proper guard rails around policy coordination.

  • Real Resilience - Portfolio resilience has to go beyond broad asset class diversification alone. Investors should consider alternative return sources that can provide diversification, such as private markets. A focus on sustainability can help make portfolios more resilient.

How Much Does Political Party Impact Economic Growth? -- Capital Group

Regularly Re-Assessing Risk -- Hartford Funds

If you’ve been building your nest egg for a while, you’ve seen markets go up and down. But if you’re close to retirement—or already there—a significant loss can be quite painful. That’s because simple arithmetic makes any investment loss tougher to recover from. In percentage terms, the more you lose, the harder it becomes to break even. Therefore, as you near retirement, protecting against losses should be one of your main priorities.