Wealth Management Newsletter | All posts archived in 'March 2020' — Page


From monthly archives: March 2020

We are pleased to present below all posts archived in 'March 2020'. If you still can't find what you are looking for, try using the search box.

The Coronavirus and the Global Economy

As of February 26, 2020, the death toll from COVID-19 — the official name of the coronavirus first reported in Wuhan, China — passed 2,700, while the number of confirmed cases exceeded 80,000. Almost all were in China, most of them in Wuhan and the surrounding Hubei province. But more than 2,500 cases, including 46 deaths, had been reported in almost 40 other countries. A surge of cases and deaths in South Korea, Italy, and Iran caused new concern that the virus may be difficult to contain.1 Cities under lockdown By mid-February, at least 150 million people in China were under restrictions affecting when they could leave their homes, and more than 760 million — about 10% of the world's population — lived in communities under some form of travel restriction.2 Most global airlines cancelled service to and from China, disrupting tourism and business travel.3 The Chinese government enacted restrictions around the time of the Lunar New Year celebration, during which many bu ...

Market Month: February 2020

The Markets (as of market close February 28, 2020) With a growing number of countries reporting new cases of the coronavirus, the obvious spread of this dreaded virus prompted a massive panic sell-off, the likes of which haven't been seen since 2008. Investors' fears of widespread economic tumult caused by the coronavirus were too much to ignore, despite last Friday's statement from Fed chairman Jerome Powell that the central bank was prepared to cut rates if necessary when it meets in March. Crude oil prices fell by over $6 per barrel since the end of January. The 10-year Treasury note fell to a record low as money flowed into long-term bonds, pushing prices higher and yields lower. By the close of trading on the last day of February, each of the benchmark indexes listed here sustained major losses, led by the Dow, which fell by more than 10.0%. The small-cap Russell 2000 dropped more than 8.50% for the month, followed by the S&P 500, the Global Dow, and the tech stocks of the Nasdaq. Y ...

Dealing with Market Volatility

In recent days, the increase in volatility in the stock market has resulted in renewed anxiety for many investors. While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. Additionally, for long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself. Intra-Year Declines Exhibit 1 shows calendar year returns for the US stock market since 1979, as well as the largest intra-year declines that occurred during a given year. During this period, the average intra-year decline was about 14%. About half of the years observed had declines of more than 10%, and around a third had declines of more than 15%. Despite substantial intra-year drops, calendar year returns were positive in 33 years out of the 40 examined. This goes to show just how common market declines are and how difficult it is to say whether a large intra-year decline will result i ...

How Will Business & Succession Planning Benefit Business Owners?

It’s been said that dreaming is a form of planning. Although it’s nice to dream about success, that philosophy doesn’t necessarily apply when it comes to something as important as the longevity or profitability of your business. If you’re like most business owners, your business is something you’ve worked hard to start, sustain, and build. If you’re just starting out, developing a business plan and a robust succession plan should be on your list of things to accomplish. However, if you didn’t start off with a business plan, having one while building your business can be just as important. Furthermore, when potential retirement is nearing, it’s a good idea to consider the future and a potential exit strategy. “Having a solid business plan helps potential investors and financial providers realize your short and long-term goals,” said David Frederick, J.D., LL.M., and the Director of Wealth Planning at First Bank Wealth Management. “It&rsqu ...




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