Blog Posts

Now that several major news groups have projected Joe Biden the winner of the presidential election—and Congress appears divided with Democrats in control of the House and Republicans the Senate—it’s a good time to review what type of legislative support would be needed to pass certain proposals.

In August of 2020, Federal Reserve Chair Jerome Powell announced a change in how the Fed views inflation. In the past, the Fed said it would consider adjusting short-term rates when inflation approached 2 percent. But in light of 2020’s many challenges, the Fed’s new policy may allow inflation to run above 2 percent for a period of time before any shift in monetary policy is considered.

With all of the storm and stress of the year 2020, you’d be forgiven if you momentarily forgot that we’re due for another national election in November.

Many states will be selecting governors, representatives, and senators, while the country itself will be voting in the presidential election.

However, now that the major party presidential tickets have been solidified, we will likely be hearing more and more political discussion in the coming months.

How are you feeling these days?

The COVID-19 outbreak has put tremendous pressure on stock prices, prompting some investors to blindly and indiscriminately sell positions at a time when the entire market is trending lower. Worried investors believe "this time it's different." When the market drops, some investors lose perspective that downtrends, and uptrends, are part of the investing cycle. When stock prices break lower, it's a good time to review common terms that are used to describe the market's downward momentum.

A correction is defined as a decline of 10% or greater from a recent high in the financial markets. Corrections can last anywhere from days to months, but few have lasted longer. Recently, we’ve seen a bumpy ride, and many people are looking for context as to what this might mean for their financial future.

Stock prices have bounced in-and-out of correction territory, as investors attempt to measure the economic impact of the COVID-19 virus. During periods of volatility, it’s important to remember that stock market corrections are not unusual and represent a normal part of the investing cycle. While the performance of any single year can deviate significantly from historical norms, on average, we see bear market corrections of 20% or more about every 3-4 years. The current situation of the market reacting to COVID-19 is impactful, but markets adjust all the time.