The worst four-month start for the S&P 500 since 1939 was pretty bad, but stock market volatility this week was shocking: the 932-point increase in the Dow Jones Industrial Average on May 4 was accompanied by 1,063 points for the next day.
Signs of panic appeared on the New York Stock Exchange on Thursday, and the company’s insiders accelerated their trading activity, instead of buying down the shares of their companies.
And now? What can you do to protect your investment portfolio or take advantage of volatility? Jeff Reeves outlines eight defensive strategies.
If you want to help out, Hayes Martin of Market Extremes expects a rebound that could provide that opportunity for sale.
For the longer term, Brett Arends spoke with Ben Inker, co-head of GMO’s asset allocation division in Boston, who has specific advice on where nest-building investors should invest.
Learn more about the gloomy stock market:
Protect your money as interest rates rise
This week, the Federal Reserve took two important policy steps to combat inflation by cutting liquidity. Investors in bonds awaiting Fed action have already raised interest rates, causing falling stock and bond prices this year and raising fears of a short-term recession.
Here are some recent materials and tips on how to get through tough times for your portfolio, savings and investments:
Reality check after the bull market
Unicorn startups – worth $ 1 billion or more – were hot products during the long bull market. One example was Carvana, which destroyed the used car market with streamlined service. Times have changed, as you can see from the chart above. This is how Carvana’s plight affects other unicorns.
Another reality check after the bull market: IPO ETF fell 8% amid market carnage ahead of expected Bausch + Lomb prices
Zillow emphasizes uncertainty
In November, Zillow announced that it would discontinue its home buying business to focus on its core online housing and agency services, as well as mortgages. The company released results for the first quarter after closing on May 5 and said that profits from the Internet, media and technology core grew by 10%, ahead of its expectations.
Of course, it was a good quarter – better than analysts expected. But in this market, all eyes are on corporate forecasts for the profit season. Shares of Zillow fell 15% in the previous auction on May 6 after CEO Rich Barton said that the prospects for the US housing market “may be volatile in the short term.”
Retreats for all needs and desires
Sylvia Ascarelli writes “Where can I retire?” column. This week, she is helping a couple who are planning to retire and want space for a large garden, goats and chickens. Here are three possible locations.
Check out CNET’s retirement search tool for your own personalized search. It includes data for more than 3,000 U.S. counties and includes climate risks.
Once there: 5 tips on how to find a great part-time job in retirement
The results of physical activity research may surprise you.
A threat to Apple
Apple has an incredibly loyal customer base, and not just because the iPhone is so reliable. The company says it protects consumers by strictly controlling the software running on its devices. But policymakers and regulators are aiming for some restrictions, according to John Schwartz.
A great find in a second-hand shop
“Shopping” does not necessarily mean looking at the latest fashion and high prices. Digging around can reveal a real deal, as it was at the Goodwill store for this art collector in Texas.
Forget investing styles and read this book – or spread the word
The problem with reading a book that gives well-measured investment advice is that it is better read by those who are more inclined to follow fashion than proven methods to create wealth. The turtle beats the hare.
Here are 11 important lessons about money and investing from Brian Feroldi, author of Why the Stock Market is Growing? Everything you should have learned about investing in school, but you didn’t.
Consequences of a tough labor market
High inflation and a tough labor market make it difficult for companies to balance prices and costs. Lyft shares fell after the company said it would increase costs to attract more drivers. Competitor Uber tried to prevent a similar reaction from the market by raising earnings, but its shares also fell.
Domino’s Pizza also lacks drivers.
Starbucks is also in transition within the union part of its workforce. Another challenge for the company is to change the tastes of consumers, says Tonya Garcia.
What is your fitness tracker for?
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