Staying Sane in Wild Markets

It’s been a neck-snapping, stomach-churning, headache-inducing few weeks for savers and investors. The speed with which the market went from a record-high close on February 12 to the worst week for stocks since the Great Recession by the month’s end was mind-numbing. In the ensuing days and weeks, investors have continued to veer wildly between extreme worry over the potential for the coronavirus to tip the country and the world into recession and cautious optimism that global leaders would come up with a unified plan to slow the spread of disease and contain the fallout.

Even an emergency interest-rate cut from the Federal Reserve in early March, two weeks ahead of its regularly scheduled meeting, didn’t serve to reassure—and with good reason. Says David Lebovitz, a global market strategist with J.P. Morgan Asset Management, “It’s just impossible for anyone to know whether the worst is over or there’s more carnage to come.”

That uncertainty about what the future holds is deeply unsettling, not just for Wall Street money managers and people in the 1 percent but for regular folks too—people who are contributing to 401(k)s and IRAs for retirement, socking away money for their kids’ college education in 529 plans and building savings in investment accounts for other long-term goals.

“What makes

Stai leggendo un'anteprima, registrati per continuare a leggere.

Altro da Newsweek

Newsweek4 min letti
A Musical Chameleon Goes Retro
@newbeats Like DavidBowie before her, Annie Clark, the innovative singer-songwriter-guitarist who goes by the stage name of St. Vincent (the moniker, she says, comes from a line in a Nick Cave song), has come up with alter egos tied to each of her al
Newsweek14 min lettiCrime & Violence
Can America Seize this Moment?
I want us to have a hard conversation— about race, about injustice and about the possibility that America could seize the unprecedented moment we are in right now, the aftermath of prosecutors and a jury finally holding a violent police officer accou
Newsweek25 min letti
Deadly Encounters
At least 1,050 civilians and law enforcement personnel died in police encounters between George Floyd’s murder and the conviction of Derek Chauvin, the former Minneapolis Police Department officer who killed him. Chauvin’s conviction is a statistical