More bad news on the employment front did not hamper continued incremental advancement by investment markets. Most would scratch their heads on how markets could interpret depression-like employment figures to positive outcomes for securities. It can be hard to remember that markets are attempting to distill where the economy is going--not where it is today. Perhaps the figures were "not as bad" as what asset prices currently have "priced in." Time will tell.
My reading for the week:
5 ways the world could change: An investor watchlist -- BlackRock Blog
- Beyond BlackRock's weekly market update, the article looks at how COVID-19 may impact our world going forward. These include:
- Technology's impact on a low-touch society
- Global vs. Local debate
- How we think of a business's financial health
- An acceleration of focus on a company's social governance & environmental record
- Easing back into travel & leisure
- A video summary is also posted here:
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Navigating a new landscape for dividends -- Capital Ideas
- For income investors, stock dividends remain an important piece of the puzzle. The article looks at dividend sustainability coming out of the crisis.
- Dividend-paying stocks face pressure on many fronts today.
- Fundamental research and diversification are the keys to investing in income-oriented companies.
- Given ultralow interest rates, dividend payouts remain a crucial source of investment income.
