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Midweek Report: Virus headlines move markets

Midweek Report: Virus headlines move markets

May 20, 2020

Monday brought a major move for markets on news that a vaccine trial had seen positive results in 8 participants. This was enough to move markets more than 3%. These are the types of headline moves I would expect over the coming weeks & months until proven therapeutics & vaccine become a closer reality. Certainly economic information will have its impact, but investors clearly believe that the economy is almost entirely in the hands of the virus.  

The balanced investor would do well to remember that economic fundamentals will also be important as the world climbs out of the COVID-19 economic hole.

Here's what I'm reading this week:

Navigating an Uneven Road to Recovery -- BlackRock Blog

  • The pace of recovery and prospective outcomes are looking increasingly diverse across the globe & the nation.

  • In an environment where regional recovery is uneven, BlackRock sees country as a unit of analysis becoming more relevant for investment decision-making.

Guide to Market Recoveries -- Capital Ideas by Capital Group

  • Capital Group published a Guide to Market Recoveries, and while the entirety is a compelling read, I would these two images most interesting:

Behavioral Insights: Addressing Retirement Challenges -- PIMCO

  • Nobel Laureate Richard Thaler and PIMCO CEO Emmanuel Roman discuss the decision-making challenges investors face in the shift from accumulation to decumulation.
  • This is a great interview about the behavioral/emotional side to retirement planning.

Have a great week,