Commentaries

Timely market commentaries from leading investment firms

How the U.S. Economic Stimulus Package May Affect Investors

Schwab experts share their perspectives on how the legislation may affect individuals and markets.

Weekly Investment Strategy

The US economy will likely struggle temporarily, but the combination of aggressive monetary policy and substantial fiscal stimulus should deter the worst case scenarios from occurring. These efforts will serve as a ‘bridge’ to a place not too far in the future (hopefully June) where the virus is contained, a therapeutic response is developed and the economy returns to normality.

So It Begins

The economic impact of COVID-19 has been shockingly large and swift, but most of the information has been anecdotal. Economic data reports are by their nature backward-looking. However, the latest unemployment claim figure and the University of Michigan’s Consumer Sentiment Index point to a sharp contraction in economic activity.

The Key Part of the US Fiscal Relief Package? Willingness to Act

The historic US fiscal aid package isn’t a quick fix, but it provides welcome relief and will make it easier for the US economy to rebound when the coronavirus crisis eases. More important, it shows that Congress is willing to act swiftly and dynamically.

Relative Risk to Policy in a Liquidity-Challenged Environment

Rebalancing is a case where inaction creates risk to policy in volatile times. One of the most critical rebalancing points of the past decade is ahead of us. So now what?

What’s Needed Now: Patience and Perspective

Russ discusses the importance of keeping perspective as we face an unprecedented crisis.

The Economic Cost of Social Distancing

The economic costs associated with the coronavirus case outbreak are nothing short of staggering. Expect Q2 to collapse which is not good for equities and not good for bonds either.

Where “I Bought It For The Dividend” Went Wrong

The majority of the time, when you hear someone say “I bought it for the dividend,” they are trying to rationalize an investment mistake. However, it is in the rationalization that the “mistake” is compounded over time. One of the most important rules of successful investors is to “cut losers short and let winners run.”

Two Roads Diverged...

Quarterly commentary giving an overview of the markets and the importance of having and implementing a strategy when investing in the markets.

The Road Back to 3000

Michael Grant is preparing for rebound in equities and has positioned the long/short portfolio accordingly. To use a Wayne Gretzky analogy, he is skating to where the puck will be, not where it is.

The Road to Premiums is Paved with Good Intentions: Perspective on the Fed and ETFs

The US Federal Reserve recently announced a number of measures to support the economy and markets amid the coronavirus crisis. One involves the purchase of fixed income exchange-traded funds (ETFs). David Mann, Head of Capital Markets, Global ETFs, shares his thoughts on the subject, and what he thinks is the best way to support the corporate bond market through these purchases

Congress Goes Big, States Play a Vital Part in Recovery, and a Dollar Crunch Takes Hold

Relief efforts measured in trillions of dollars are bound to have some positive effect.

Congress and the Fed Just Opened the Stimulus Floodgates

On Friday, Congress approved and President Trump signed into law a $2.2 trillion emergency stimulus package, the largest in U.S. history. Most American adults will be receiving a one-time payment of $1,200 in cash.

Postcards from the Frontline

With the economic and market situation changing by the day, I decided to approach this letter a little differently. Rather than go deep on one topic, I’ll share brief bullets on the many points swirling in my mind. Think of it as Postcards from the Frontline. These will be in no particular order and may generate even more questions.

Shelter In Credit

Jon Roiter reflects on a wild ride in the high-yield credit market and whether now is the time to capitalize on attractive investments in the space.