Latest Posts

Enduring a "Tough Two Weeks Ahead"

by Eric Nager on Apr 3, 2020

The President’s March 31 daily update on the Covid-19 virus included a sobering comment that we should be prepared for two difficult weeks.  Yes, that seems to be bad and even unnerving news, but the silver lining could be that the virus impact may be in the process of peaking out, at least in the New York City area. Getting past the high point of the curve and reaching the downside will be very encouraging to all.

The Four Steps Required For Recovery

by Eric Nager on Mar 27, 2020

In our previous e-mail communiques, we have focused on the immediate need and a constructive outlook for the future. This one will be different. We will lay out the four essential elements for recovery and our view as to where we are as far as the progress toward accomplishing each of them.

1)     Monetary Policy – This is the realm of the Federal Reserve (Fed). We can check this box because the Fed has committed to unlimited QE (money creation) to deal with the crisis.

The Battle Lines Are Being Drawn!

by Eric Nager on Mar 25, 2020

This morning (March 23) the Fed announced that they will provide “unlimited QE.”  This means that whatever the government wants to spend to combat the effects of Covid-19 will be backstopped by the Fed. In the 2008-2009 crisis, the world was shocked when they added $3.5 trillion to the balance sheet through QE. Now that seems like “small potatoes” in relation to what they are presently doing.

We Will Believe It When We See It!

by Eric Nager on Mar 25, 2020

This may be the attitude of people regarding the promised government stimulus currently estimated to be $1.2 trillion with more indicated beyond that. This mind-set has been putting continued pressure on the economy and the markets. The fact that it is beyond rational makes no difference when fear is the driving emotion. Of course, it would be very helpful if the government would stop the talking and begin distributing the stimulus money – people want to see it, not hear about it.

Uncertainty And Fear Continue To Rage On

by Eric Nager on Mar 25, 2020

The markets are behaving as though we are facing the bubonic plague of the Middle Ages which killed between 30% and 60% of all Europeans. Covid-19 is very serious and should not be taken lightly, but it is unlikely to decimate the world’s population. The medical experts seem to be saying that, like most viruses, it will cycle through in a few weeks to a few months. It is dangerous and there have been and will be fatalities, especially among the medically vulnerable, but as a nation and a society we will survive and recover.

What Is The Difference Between 2020 and 2008?

by Eric Nager on Mar 19, 2020

Both years have witnessed sharp market selloffs and fears being turned into panic. But the differences are greater than the similarities. In 2008 there was a financial crisis and the financial institutions themselves (the backbone of the financial system) were in jeopardy. Central banks and government policymakers were totally inexperienced and unprepared to deal with the problem. Consequently, it took a long time for them to come to the point of effectively combating the crisis.
           

Just What We Needed: Another Challenge

by Eric Nager on Mar 12, 2020

On top of having to deal with Covid-19, we are now confronted with an oil-price war between Russia and Saudi Arabia. Normally, a sharp drop in oil prices is celebrated as a great thing. However, these are not normal times and since the US is the world’s largest energy producer, there are concerns about the health of the oil shale industry. There are many jobs in this sector which is a major concern. This helps to explain the highly volatile market today. Nevertheless, a drop in oil and gasoline prices will be a big benefit to lower end consumers which is good for the economy.

The Importance of Proper Planning for a Physically Ill Spouse or Loved One

by Eric Nager on Feb 26, 2020

Finance

Proper financial planning should always be a focus, but for those who are dealing with a physically ill spouse or loved one, it is crucial. There are several financial considerations that you will need to ponder, and naturally, these will not work with every situation, and chatting with a professional financial planner is always the best place to start. 

Cash Flow

How to Avoid Emotional Investment Choices

by Eric Nager on Feb 14, 2020

Investments

 

 

Investing is a marathon, not a sprint. It takes guts to stick to your plan and avoid selling into a bad market. “Buy low, sell high” seems easy enough to master. Many investors fail to follow this advice including DIYers and professional advisors alike. There are ways to avoid the pitfalls of emotional investing  — here’s a collection of a few to remember.

Establish long-term goals