Bringing the Economy Back from Life Support
With recent data showing a coronavirus-driven recession in the United States appears inevitable, the question for many investors is how long it will last. Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income, weighs in on the differences between this one and other recessionary periods—and whether policymakers can engineer a recovery.
Mapping the COVID-19 Recession
Until there is a better sense of when and how the COVID-19 public-health crisis will be resolved, economists cannot even begin to predict the end of the recession that is now underway. Still, there is every reason to anticipate that this downturn will be far deeper and longer than that of 2008.
Weekly Gasoline Price Update: Regular and Premium Down 8 Cents
The price of Regular and Premium are down eight cents each from last week. According to GasBuddy.com, Hawaii has the highest average price for Regular at $3.19 and Wisconsin has the cheapest at $1.41. The WTIC end of day spot price closed at 26.08, up 27% from last week.
World Markets Update
All eight indexes on our world watch list posted losses through April 6, 2020. The top performer is China's Shanghai with a loss of 9.38%. Our own S&P 500 is in second with a loss of 17.55% and in third is Hong Kong's Hang Seng with a loss of 17.57%. Coming in last is India's BSE SENSEX with a loss of 33.12%.
Actively Managed Funds Fail When Needed the Most
Advisors had little use for actively managed funds over the recent bull market; index funds did exceptionally well. But just when those actively managed funds were most needed – over the recent market downturn – they failed to protect investors.
Convertibles: Providing Risk Management and Positioned for a Snapback
The stage is being set for what we internally call the “convertible trifecta.” The markets are uncertain right now. But when markets eventually calm, the team would expect to see the combined forces of equity upside, credit upside and convert valuation gaps closing, which can be very powerful on the way back up.
Weekly Investment Strategy
The phrase “a picture paints a thousand words” seems truer than ever as images of lockdowns flood our newsfeeds. From the eerie emptiness of Time Square to closed retailers, there is concrete evidence that all are doing their part to combat the outbreak.
Cisco, Apple and Oracle: Strong Cash Positions Indicate Safe Long-Term Returns
During this horrible crisis, I feel very fortunate that “social distancing” is very practical and easy for my family and me. We are blessed to live in the country on a 20-acre estate with a private lake and a backyard that is steaming with wildlife.
US Equities: Taking the Long View Through Today's Uncertainties
While the US economy continues to suffer the wrath of the coronavirus, a recovery will eventually come. Franklin Equity Group's Grant Bowers provides his latest update on the US equity market, and what he and his team have an eye on with a long-term investment view.
Record Unemployment Claims and Oil's Best Day Ever
A head-spinning 6.6 million Americans filed new claims for unemployment benefits this week bringing the two-week total to 10 million. That’s more than the combined populations of Los Angeles and Chicago.