How long will it take the markets to recover from the current correction? Bloomberg Markets takes a look back at the five other drops during this bull market and makes a forecast. Despite the newly imposed trade tariffs, Cleveland Fed President Loretta Mester remains positive about economic growth. She explains why the Fed is likely to continue raising interest rates this year. Many analysts think we may be approaching the end of this bull market. But there are still reasons to hang onto your stocks even if that’s true. Anora M. Guadiano of MarketWatch uses graphs to illustrate the discussion. The new Tax Cuts and Jobs Act will have an effect on IRA investors. This may be an especially good time to consider a Roth IRA, but there are new factors to consider.
The Lesson From Stock Corrections Past? 200 Days Of Pain– Remember the last time stocks fell so hard? You probably don’t, and that’s making today’s market seem harsher than it is. It’s a fact of the life of the mind — things always seem worse in the present. In reality, they’re not. In this bull market alone there have been five other corrections like this one, and it’s taken around seven months on average for equities to climb out of their hole. Based on that path, the current jitters won’t be fully eradicated until August. Read more...
Fed Member Says Tariffs Add ‘Uncertainty’ To Otherwise Strong Economic Growth Picture – White House tariffs add “uncertainty” to an economy that otherwise is set for strong growth. That’s according to Cleveland Fed President Loretta Mester. She believes fiscal policy through tax cuts and spending will increase GDP by about 0.5 percentage points a year. Read more…
Why Stock-Market Investors Should Embrace A Flattening Yield Curve—For Now – Investors are nervously watching the Treasury market for a recession warning signal. But even if it comes, history suggests they might not want to be too hasty in ditching stocks. Read more…
How The New Tax Law Creates A ‘Perfect Storm’ For Roth IRA Conversions– There are two things behind the potential storm: the low current tax cost for converting, plus an avoidance of possibly higher tax rates in future years on income that will accumulate in your Roth account. Read more…
John R. Day, Bill Ennis, Stephanie Hall and Matt Heller