Unprecedented—that’s the word that comes to mind when reflecting on the current health and economic crises caused by the COVID-19 pandemic. The virus itself has not caused the market to decline nor the global economy to grind to a screeching halt, but social distancing has. While plenty of post-pandemic analyses will assess whether this was the “best” approach for society as a whole, there’s no question that this highly infectious and quickly spreading virus required a rapid response. The good news is that new cases seem to have slowed in areas that were initially hit the hardest. We hope […]
The stock market is down around 10% from the high based on fears the virus will slow economic growth and hurt corporate earnings. We think this scenario is likely but will prove temporary.
The SECURE Act—also known as "Setting Every Community Up for Retirement Enhancement" took effect on January 1st, 2020.
After the uncomfortable 4th quarter last year (when stocks declined 14%), we wrote about a few items keeping our attention. Besides our indicators (which were negative at the time), the trade war with China and the Fed tightening monetary policy were top of mind. Here we are three months later and the negative trajectory of each item has reversed course sending stocks 13% higher. This increase basically recoups most of the previous quarter’s decline. If we were on a boat experiencing these ups and downs, we’d all be seasick!
Last month we passed the 10 year anniversary of the Financial Crisis […]
From the TPG Investment Committee:
The fourth quarter has been ugly for stocks around the world. After a wonderful third quarter, U.S. stocks (as represented by the S&P 500) have declined around 15% from the high in October. As unsettling as that may sound, the magnitude of this selloff isn’t out of the ordinary for typical intra-year declines:
The chart above shows how the size of any given drop in a year (red dot) doesn’t often predict how the full year will turn out (gray bar). While a drop near the end of the year […]