Due to the unique circumstances surrounding COVID-19, we feel the need to override the April 2020 recommendations for two of our investment models: the TSP Allocation Model and our 401(k) Allocation Model.
Article Category: Economy
Amid the ongoing COVID-19 epidemic, and the tremendous volatility in the financial markets, we wanted to provide you with a market update and some suggestions on how to manage your portfolio through this crisis.
Tune in to the stock market on any given day, and you’ll likely find the major averages zooming in one direction or the other. Sometimes the moves are choppy, rising and falling while generally heading nowhere, while other times the market can seemingly run for weeks or months in one direction.
In a previous article, we took a look at the business cycle to understand how the natural ebb and flow of our economy impacts things like asset prices, wages and interest rates. In this article, we'll dive deeper into what exactly causes those dreaded periods we call recessions.
In the quest to become a savvy investor, one of the most important concepts you must understand is that of the business cycle. This periodic ebb and flow of our economy exerts tremendous influence not just on asset prices, but on everything from interest rates to the availability of jobs. Since nearly every aspect of your financial life will be influenced in some way by the business cycle, it pays to have a basic conceptual understanding.