MARKET & ECONOMY UPDATE - MAY 2020
Most of the country has started to re-open its doors after a two month shutdown. We're experiencing economic optimism, but the effects of the coronavirus pandemic and the recent protests are likely to linger for a while. What can we learn from the state of the economy and the patterns in the stock market that we saw in May?
WHY IS THE STOCK MARKET GOING UP?
How is it possible for the stock market to be going up while the economy is in a free fall? Even though many states are starting to re-open businesses, most can't operate at full capacity and many people are still afraid to go out due to safety concerns and uncertainty about exactly what will happen next.
IT'S IN THE CARDS...
If you watched 90s late night TV, you probably remember Miss Cleo, the TV psychic using tarot cards to predict the future and give her callers life advice. In times of uncertainty, we all want Miss Cleo's (alleged) psychic abilities. However, the truth is, some things are just unpredictable.
ZERO IS THE HERO
When it comes to your retirement savings, losses hurt more than gains help. In volatile times like these, most investors experience something that is largely misunderstood - how much gain does it take to recover from losses?
FAILURE IS NOT AN OPTION
Planning for your retirement is like climbing a mountain. The goal isn't just to get to the top. You have to also make it back down.
When it comes to mountain climbing, most accidents happen on the descent. Think about the number of mistakes that you could make when you're retired.
Here's a lesson in being prepared. Over the last 10 years, while the stock market had been on a 10 year record run, we all got greedy.
This is typical investor behavior. Why sell out when the market keeps going up? We want more! But now we're seeing the importance of being prepared.
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