Contact

News & Insights

NEWS WRAP – The Coronavirus Markets Bounce Back

This is not to say that the markets are over the worst of the coronavirus crisis; if, as seems likely, the pandemic continues apace and eventually becomes endemic in the population, it would be reasonable to expect plenty of panicked moments along the way.

“It’s a little too soon for us to call an all-clear just yet,” Rob Haworth, a senior investment strategist at US Bank Wealth Management, recently told CNN. “We don’t think we’re just there yet,” he added.*

Inevitably, it is going to take time for the full scale of the coronavirus outbreak to become clear. For example, a number of companies, including Apple (AAPL), Microsoft (MSFT) and Coca-Cola (KO) warned of supply-chain disruptions, while Harvard Business Review predicted that the peak of supply-chain disruption would not occur until mid-March when, it anticipated, thousands of companies would have to halt assembly and manufacturing plants across the U.S. and Europe. It is thought that those companies relying on China for parts and materials will be the hardest hit. **

Meanwhile the Organization for Economic Cooperation said that Covid-19 poses the single largest threat to the global economy since 2009 and could cause markets to halve. ***

Against this background it remains critical that economic policymakers and investors alike remain vigilant. Although Federal Reserve Chairman Jerome Powell has acknowledged the risks of coronavirus and indicated that the central bank would “act as appropriate”,* with a cut in interest rates now looking increasingly likely, it is likely that those investors who remain disciplined will see their assets bounce back in the long-term.

“The stock market will recover once investors perceive that the worst is over for the global health crisis and that earnings will start growing along with the global economy,” commented Ed Yardeni, president of investment advice firm Yardeni Research. “We think that could happen by mid-year.” *

Authoritative cross-border investment advice

Blacktower in the US works to help clients achieve their financial and retirement goals by providing knowledgeable and personalised investment advice. We work across the US and can help you ensure that your retirement planning aligns with your goals. Contact us today for more information.

* https://edition.cnn.com/2020/03/02/investing/dow-jones-coronavirus-stocks/index.html Accessed 04-03-2020

** https://hbr.org/2020/02/how-coronavirus-could-impact-the-global-supply-chain-by-mid-march Accessed 04-03-2020

*** https://www.bbc.co.uk/news/business-51700935 Accessed 04-03-2020

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

TOP TIPS – How to Handle your Stretch IRA in the Light of SECURE

The stretch Individual Retirement Account (IRA) has long been used as an efficient estate planning strategy. However, with the passing into law of the new Setting Every Community Up for Retirement Enhancement (SECURE) Act, beneficiaries will no longer be able to stretch out required minimum distributions over the course of their lifetime.

Instead, beneficiaries who are not spouses must now exhaust their inherited IRAs within a decade – other exempt parties include under 18s and beneficiaries with certain disabilities. Quite simply, what was once a winning estate planning tool has now become a conundrum.

So, how do you solve this puzzle in order to serve the best interests of beneficiaries while simultaneously reducing exposure to any unnecessary tax burden?

Read More

Consolidate your 401ks into an IRA for Legacy Planning

A 401(k) can be a bedrock part of your retirement and legacy planning in the US, but what do you do if you feel that yours is no longer the right vehicle for your long-term strategy or you find yourself struggling as you try to balance multiple small accounts from several jobs?

Of course, not everyone takes the same approach to their old 401k(s) once they move to a new workplace: many workers opt to leave their money in the plan while a minority will transfer it into a IRA.

However, the majority may be missing an opportunity; IRA consolidation is a way to avoid the drawbacks of remaining invested in an unsuitable 401k plan while also opening up many potential benefits.

Read More

Get in touch for more information

To contact us about this or any other news, please complete the form below

"*" indicates required fields

Name*
Hidden
Hidden
Hidden
Hidden

Select your country

Please select your country of residence so we can provide you with the most relevant information: