The U.S. economy shrank at a 4.8% annual rate last quarter as the coronavirus pandemic shut down much of the country and began triggering a recession that will end the longest expansion on record. The Commerce Department says the gross domestic product posted a quarterly drop for the first time in six years.
With the U.S. economy gripped by its worst crisis since the 1930 s, Federal Reserve policymakers are expected to offer sweeping assurances Wednesday that they will act as needed to help prevent the damage from growing even worse.
Negative oil prices have dominated headlines recently. A combination of oversupply, lack of demand, and a lack of storage capacity resulted in temporarily negative oil prices, where holders of a futures contract were paying others to take delivery of oil for them.
More than half of U.S. employees are most concerned with their financial health in the wake of the novel coronavirus pandemic, MetLife’ s 18 th annual U.S. Employee Benefit Trends Study found.
Japan’s benchmark Nikkei 225 lost earlier gains, inching down less than 0.1% to finish at 19,771.19. Worries remain about fresh surges of coronavirus cases in places like China and South Korea, where they had declined as a result of social distancing, testing and arduous efforts by medical workers.
Kimberly Nguygen of Garland, Texas, is claiming Florida-based Raymond James moved her from a commission-based to a fee-based account even though she is a “buy and hold” investor who would require few, if any, trades.
Financial advisors are accelerating the transition of their business models to offer more holistic financial wellness services, a new survey finds. Fifty-one percent of surveyed advisors stated that there will be an increased focus on holistic financial planning within their practices moving forward.
As the financial crisis deepens, advisors are finding that “stay the course” is not going to cut it with clients, even though it might be good advice. This is the time to help people understand the structure of their plans and discover their real concerns.
The 4% rule doesn’t apply in today’s low-interest world, said a retirement researcher who also is the author of several books on retirement planning and spending.
As the COVID-19 pandemic has strained the U.S. economy and put millions out of work, Americans have experienced the biggest drop in their personal financial satisfaction in more than a decade. The AICPA’ s Q1 2020 Personal Financial Satisfaction index measures 32.9, a 20% decrease from the previous quarter.
A new survey finds that more than half of small business owners expect market volatility to last more than six months, and more than a third anticipate conditions will continue for at least a year.
For the first time, young advisors are facing the reality that they do not have the benefit of having guided clients through the Great Recession, the dot-com bubble, or any other notable contraction.
Individuals making less than $75,000 will receive the maximum $1,200 payment. But the first rule of thumb is to spend the money once you receive it, said Marianne Wanamaker, who is an associate professor of economics at the University of Tennessee. “The only exception to that rule is households with high-interest debt,” said Wanamaker.
Steven L. Brickner, 48, of Lithia, Fla., allegedly defrauded more than 60 retail investors out of approximately $5.5 million in marijuana company investments, the Securities and Exchange Commission said in court documents.
Headlines had oil selling at -$37.63 per barrel at close on Monday. The negative sign in front? Sellers had to pay buyers $37.63 to take the oil off their hands. Except this wasn’t the price of oil.
Congress is sprinting to approve the next coronavirus aid package, a $483 billion deal backed by the White House to replenish a small-business payroll fund and pump more money into hospitals and testing programs.
New research released today by Certified Financial Planner Board of Standards, Inc. found that during the COVID-19 pandemic, more than one in three CFP professionals surveyed say their primary recommendation to clients is to sit tight and wait to make any major financial decisions until volatility decreases.
A Gain Capital shareholder filed a proposed class-action lawsuit in a Delaware federal court last week, seeking to stop Gain’s acquisition by INTL FCStone Inc. The lawsuit claims Gain is keeping crucial information from shareholders.
This earnings season will be unlike any other, as travel restrictions and lockdowns related to COVID-19 have impacted results dramatically. The biggest economic hits came in mid-March, however, and won’t be fully captured in first quarter results.
One thing we are learning from the coronavirus outbreak is that, even when things are going well, it is important to prepare for the unthinkable. A few weeks ago, most of us were feeling pretty good about the economy, our job security, and our health. COVID-19 has brought some new perspective.
The Securities and Exchange Commission settled charges Friday against Merrill Lynch and two other firms who self-reported violations under the commission’s Share Class Selection Disclosure Initiative.
As an investor, you constantly want to see your portfolio move just one way up. But that is not possible, because the financial markets will always fluctuate. So, if you are going to invest for many decades, you need to be prepared for many ups and downs.
Stock market crashes don’ t just test investors’ mettle. Abrupt downturns also can reveal what kind of financial adviser you have. Some people will discover, to their horror, that they’ve been dealing with outright crooks. What kind of advisor are you?
U.S. stocks joined a worldwide rally Friday and closed out their first back-to-back weekly gain since the market began selling off two months ago. The S&P 500 jumped 2.7% for the day, following up on even bigger gains in Europe and Asia.
A Dallas, Texas, man and three companies he controlled allegedly defrauded investors of approximately $10 million by selling fraudulent oil-and-gas investments. According to court documents, revenue projections were inflated from 22% to 489%.
As the U.S. and the world continue to grapple with the COVID-19 pandemic and the economic fallout, advisors must prepare to handle more unique situations and a reduction in scalability across their practices.
The Federal Reserve released details on its Main Street Lending Program, which is designed to get liquidity into the hands of small to middle-market businesses. Some of the other stimulus loan programs are only open to businesses with fewer than 500 employees, but the Main Street loans are open to all small businesses.
Hundreds of thousands of families across the country are feeling the negative impact of the novel coronavirus outbreak, which is why financial advisors and officials are lending help and advice.
Already, economies around the world are shutting down. The Federal Reserve has pumped trillions into the United States economy in just a matter of days. Global supply chains have collapsed as entire Chinese industries went dark. And this is just the first stage.
Global stocks were mixed Thursday after unexpectedly weak U.S. retail and other data added to gloom about the impact of the coronavirus pandemic. The future for Wall Street’s S&P 500 index edged up a day after the benchmark fell 2.2% on news U.S. retail sales and factory output plunged in March.
A White Plains, N.Y. man and two companies will pay a $3.5 million fine to the Securities and Exchange Commission to settle allegations of fraud and market manipulation that included buying and selling a stock to make it appear to be a hot property.
What makes this recession unique is the government intentionally brought it on, with the chances for an economic bounce back later this year high if the virus is contained. If this recession becomes one of the shortest on record, as we expect, stocks may enjoy better times ahead.
Technology, investor awareness and passive options are just some reasons why active management will continue to suffer a loss of relevancy and business, said Chip Roame, managing partner of Tiburon Strategic Advisors.
Despite the current grim economic news, most forecasters predict the U.S. economy will rebound quickly once the immediate public health crisis caused by the novel coronavirus is brought under control. A leading historian of the Great Depression agrees.
Japan’s benchmark Nikkei 225 added 3.1% to finish at 19,638.81. Exports to the United States fell 20.8% from last year to $25.2 billion while imports of American goods declined 12.6% to $9.9 billion. China’ s politically sensitive trade surplus with the United States was $15.3 billion.
A Florida man was served with an emergency cease-and-desist order by Texas officials who claim he was touting a “recession-proof” investment to weather COVID-19. In reality, officials say he was selling unregistered securities.
Money management, especially once you retire, is very important. However; we have seen poor decisions wreck good plans enough times to know that human beings are inclined to make bad choices about money.
Perceptions about when retirement will start and what it will look like are much different from the experiences of people already in retirement, according to the new 2020 Retirement Risk Readiness Study from Allianz Life Insurance Company of North America.
In response to the outbreak of the coronavirus grinding the nation’s economy to a near standstill, Congress passed a $2 trillion stimulus package, called the Coronavirus Aid, Relief, and Economic Security Act. That bill included the Paycheck Protection Program, which provides forgivable loans to businesses.
Like everyone, you are concerned about keeping your family safe and healthy, and you’ re doing your part to help protect your community from the effects of the coronavirus. And if you’ re an investor, you must also address your financial situation. U.S. unemployment entered this situation near a 50- year low, with solid wage growth.
While Americans have a high level of anxiety during the coronavirus pandemic, most are willing to make significant sacrifices and many are optimistic about the future. They also believe that government leaders are taking the appropriate actions, according to a new national Research America, Inc. public opinion poll.
Worldwide, the death toll headed toward 100,000, with the confirmed number of infected people topping 1.6 million, according to Johns Hopkins University. The U.N. labor organization says the equivalent of 195 million full-time jobs could be lost in the second quarter alone.
Wall Street closed out its best week in 45 years on Thursday after the Federal Reserve launched its latest titanic effort to support the economy through the coronavirus outbreak. The central bank announced programs to provide up to $2.3 trillion in loans to households, local governments and businesses.
The difference between now and the start of the pandemic is that we can at least see the end. We can see that we have flattened the curve, and we can reasonably project when the pandemic will be brought under control. What does that mean for the markets and the economy in general?
Our entire way of life and how we operate on a daily basis has been turned upside down and inside out. For many people, they have been able to adapt to the new reality, but for many more, the sudden, drastic change to how we function is causing stress.
Stocks shot to a 3.4% gain Wednesday on Wall Street as investors chose to focus on the optimistic side of data about the coronavirus outbreak’s trajectory. It’s the latest about-face in this brutally volatile stretch for the U.S. stock market, which has flip-flopped from gains to losses for six straight days.
The coronavirus pandemic has upended the lives and finances of millions. A federal relief package aiming to provide payments to distressed consumers passed March 27– but that money is not likely to land for a number of weeks. Now is the time to make a spending budget.
The Securities and Exchange Commission issued two alerts today letting broker-dealers know that regulators will be looking for a “good-faith effort” to comply with the impending Regulation Best Interest.
One-third (33%) of Americans near retirement (age 55-65) failed a basic knowledge quiz about Social Security retirement benefits, while another 19% barely passed with a D. That’s more than half (52%) with an opportunity to firm up their knowledge base.
Stock market volatility has remained high as investors continue to closely track COVID-19 containment efforts while getting a glimpse into how damaging travel restrictions, stay-at-home orders, and social distancing have been on the US economy.
In the Great Depression that commenced in 1929, a sectoral weakness caused by the Dust Bowl and an overly speculative stock market turned into a 12-year economic collapse because of cash hoarding by the federal monetary authority itself.
A worldwide rally gained steam on Wall Street Monday, propelling major indexes up more than 7%, as traders cheered glimmers of hope that the deadliness of the coronavirus outbreak could be slowing in some of the hardest-hit areas. Gains accelerated throughout the day.
International Investment Group hid losses, doctored records and sold millions in fake loan assets to clients, according to the SEC complaint. The company agreed to a $35 million settlement.
March was a really tough month. After a terrible February, all major stock indices were down by double digits, leading to significant declines for the quarter as a whole. All of the major indices ended the month and quarter below their 200-day moving averages, often a sign of more trouble ahead.
With so much uncertainty surrounding the COVID-19 crisis, it is difficult to predict how the economy will fair for the remainder of the year. Many economists have been looking for a drop in real gross domestic product- the monetary value of all final goods and services produced- to the tune of 14% to 40% on an annualized basis in the second quarter.
In today’s challenging times, financial advisors are thinking about the health of their clients, their families and their colleagues, what’s happening in their communities and the effect of COVID-19 on the markets.
To ensure clients have immediate means to cover unforeseen costs, advisors should consider the merits of personal lines of credit as an alternative to standard emergency fund plans. Here’s how advisors can manage the process.
Major U.S. indexes rose more than 2% Thursday. Energy stocks led the way higher as the price of crude oil jumped 25%, bouncing further off an 18- year low, after President Donald Trump said he expects Saudi Arabia and Russia to dial down their price war.
The Securities and Exchange Commission secured a summary judgment this week against a concert promoter charged with defrauding investors to promote Christian music concerts and festivals in the New England area.
