As the coronavirus continues to spread and claim lives across the world, the markets have plummeted and people in the “informal economies” of the world are without work or food. As we wrote in our article, How Far Could Stocks Fall, we reminded our readers that the stock market crash that started in 1929 did not end until 90% of market value was gone three years later. The economy was further damaged by an ill-advised trade war (Smoot Hawley Tariff) and the evaporation of credit. Historians may decide in years to come that the […]
The U.S. Federal Reserve has slashed already-low interest rates to zero. They are taking other measures to preserve credit and pump money back into the system. But, the steady spread of the coronavirus and predictions of 20% unemployment and worse are unsettling markets as investors wonder how far stocks will fall. As the economy contracts we will see the possibility of interest rates going below zero. How will negative interest rates affect your investing?
How Will Negative Interest Rates Affect Your Investing?
Forbes wrote a useful article a year ago about the damage negative interest rates would […]
Despite Presidential assurances to the contrary, the coronavirus is taking hold in the USA as well as everywhere else in the world. The stock market has tanked and one question is how far stocks will fall. The other is if this will be so bad that it leads to an economic collapse. A major factor today that puts your investments at risk is the high level of corporate debt. How could debt destroy your investments?
How Could Debt Destroy Your Investments?
Despite the Fed buying treasuries and reducing interest rates to nearly zero, the market is […]
It seems that every time there is some sort of threat to health, welfare, or your pocketbook, the scammers show up looking for ways to trick you out of your money. The most recent threat is the Chinese coronavirus. The disease is highly contagious, kills its victims at about ten times the rate of influenza cases, and does not seem to be under control at the source in East and Central China. While this is happening, investors are smart to consider investment risks and opportunities such as whether pharmaceutical stocks could be a good […]
More than 3,000 Chinese stocks fell by their daily limit the moment the Chinese stock market opened this morning. What is happening? A new, mutated, and lethal virus called a coronavirus has killed more than two hundred people, infected more than ten thousand and led to a virtual shutdown of large segments of the Chinese economy. This is a huge social and humanitarian disaster in the making as the virus has spread across the world to dozens of countries and air travel to and from China has been restricted. From an investor’s point […]
A deadly coronavirus in central China has made the jump from animals to humans and threatens to spread throughout the world. Health authorities in China race to contain the infection as the virus has the ability to jump from human to human. It is already in Japan and Thailand and major US entry points are taking precautions by screening new arrivals for fever. For the investor, there are two issues involved. One is how badly the spreading virus could affect the economies of countries where it lands and the other is opportunities in […]