Reading List for March 6-8

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Mar 06, 2020
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Current Events, Investing, Economics, Mortgages, Financial Literacy

This week's list is devoted predominantly to the wide-ranging impacts of the Coronavirus in addition to wild fluctuations in the stock market.  (As predicted after last week's tumbling market, this isn't over yet.)

Investing

  • What should stock market investors do in this market? A Wealth of Common Sense suggests you ask yourself some questions to help figure that out.
  • Of Dollars and Data explains why now you will understand why you should invest in bonds.
  • 10-year Treasuries dropped below 1% for the first time ever, and repeatedly broke its record low this week. Watch the progression: WSJ 3/3, CNBC 3/5, CNBC 3/6.
  • Trading App Robinhood shut down twice earlier this week, understandably making customers really unhappy. Was it overwhelmed by trading volume (or did someone forgot to include lead day in the coding.)? (CNBC)

 

Economics

 

  • This first article set up the situation faced by the Federal Reserve in light of the coronavirus and central banks around the world. (NYT)
  • By Tuesday, the Fed made a surprise announcement that it was dropping the target fed funds rate by 50 basis points. (CNBC)
  • The jobs report came out this morning (3/6), beating expectations ahead of any corona virus impacts at 273,000—unemployment back to 3.5%. (NYTimes) (NOTE: this data is based on surveys conducted in the middle of February.)

 

Mortgages

  • Average interest rates on a thirty-year mortgage dipped to a record low of 3.29%, but may spur home-buying. (AP)
  • Refinancing, on the other hand, is going gangbusters. (Mortgage Bankers Assoc.)
  • And mortgage lenders are hiring to keep up with record volumes of mortgage approvals. (Bloomberg-subscription)

 

Savings/Employment

  • The Consumer Federation of America issued a report on what banks are doing to support low-income savers. The impact coronavirus will potentially have on lower income individuals will exacerbate their tenuous savings situation. (WaPo)
  • Gig workers are also in a vulnerable position, specifically the 16% who live paycheck to paycheck with no savings. (PYMNTS.com)

 

Corporate impacts

  • We understand potential hits to airlines, hotels, restaurants, but even Match.com is anticipating people will be going on fewer dates. (MarketWatch via Morning Brew)
  • And from Thursday’s Morning Brew, here are two corporate news items that may not be as obvious.
    • Campbell Soup is ordering more ingredients to keep up with demand for its canned items during the coronavirus epidemic.
    • No Time to Die, the upcoming Bond film slated for an April release, was pushed to a November rollout due to coronavirus’s impact on theatrical demand.

Other articles of interest:

Financial Health

  • Keeping yourself physically and financially healthy as winter drags on, especially if you have SAD (Seasonal Affective Disorder). (HerMoney)
    41% of couples who combine finances “misbehave” financially in some way. Here is AARP’s advice on financial infidelity, important for couples of all ages.
  • Is taking care of your parents taking you to the cleaners? AARP offers some tips for protecting your finances while helping parents.

Careers-Chart of the Week

  • Have you ever considered the value of unpaid work around the house (mostly done by women around the world)? This NYT Opinion piece is filled with great graphics, some interactive, and values women’s worldwide unpaid labor at 10.9 Trillion!

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