Is the recent market downturn a prelude to a bear market or just a normal correction? Vanguard offers analysis on the regular corrections that global markets experience and reports on how long it takes them to recover. Despite increased warnings of a recession, Liz Ann Sonders of Schwab believes the leading economic indicators point to a different forecast. She compares the current markets to those of 2008. Those who want to be prepared for whatever life brings are getting into the market for long-term care insurance. Forbes contributor Walter Pfau writes about how to find the best coverage options. Tomorrow’s investors have little chance of getting a start on their financial education in school. Shelly Schwartz of CNBC writes about how schools are failing to help students achieve financial literacy.
Corrections And Bear Markets: What Does Vanguard Think?- The global stock market decline of late is not unprecedented, and such setbacks should be expected on average once every two years. Since 1980, the global stock market has experienced 12 corrections and 7 bear markets. Over the past 36 years, stock prices have spent almost 30% of the trading days in corrections or bear markets. Patience and discipline are the most prudent response to market corrections, as the global stock market recovers in four months, on average. Read more…
Life In The Fast Lane: Look Through the Windshield, Not The Rear View Mirror– Recession risk is up, but beware of the cacophony of apocalyptic forecasts says Liz Ann Sonders, Chief Investment Officer at Schwab. In this article she explains why the leading indicators do not show a recession any time soon. Read more…
What Are The Best Coverage Options For Long-Term Care Insurance?– Wade Pfau explores the factors to consider in choosing long-term care insurance. At the very least, he writes, know what the waiting period is before benefits begin, what benefits are provided and for how long, and the value of the total benefit pool. Other factors to consider include inflation protection and secondary benefits. Read more…
US Schools Get Failing Grade For Financial Literacy Education– The number of states requiring high school students to take economics has decreased since 2014, down to 20 from 22, according to a survey by the Council for Economic Education. Seventeen states — the same number as in 2014 — require courses in personal finance. Overall, the survey shows financial education standards vary widely among states. Read more…
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller