By Bob Landaas
These are certainly trying times for investors. As the novel coronavirus spreads, significant sectors of the U.S. economy have either slowed or shut down. The plunge in stock prices has unnerved even seasoned, long-term investors. I am thankful for practicing a balanced approach to money management. Most clients have a significant portion of their investments in bonds. Bonds serve many roles but primarily function as a source of funds during a bear market.

Amid record but slowing economic growth and solid midyear stock returns, financial markets face strong valuations, weak earnings and—thanks to an about-face in Federal Reserve policy—lower interest rates. In a Money Talk Video, Bob Landaas and Kyle Tetting review the latest developments and explain what they mean to investors.

By Bob Landaas
Last month, I wrote that the trade disputes with China were holding back the U.S. economy and along with it, stock prices. Since then, moderate progress on trade issues and a postponement of even higher tariffs on China have sent the Dow Jones Industrial Average 1500 points higher.
The uncertainties of the trade wars have held back corporate spending and were cited as the top concern by companies in their earnings calls. Even a partial resolution of the trade problems could unleash spending as the outlook becomes clearer.

By Bob Landaas
As I get older, it becomes clearer to me that there are some problems that you face that can be solved while there are others where there is no easy fix.
Two of the issues that are weighing on financial markets currently are solvable and give investors hope after the disappointments of last year.

By Bob Landaas
Stocks are off to a strong start for 2017 with the broader markets climbing 6% during the first quarter. Earnings are forecast to rise 10% for the first quarter, compared to the first quarter of last year. That increase in earnings is significant because it would be the highest growth since the end of 2011.

By Bob Landaas
Since the results of the presidential election, stocks have rallied, bonds have sold off and the dollar has strengthened. While it is far too early to know with any degree of certainty the impact of a Donald Trump presidency on the financial markets, several trends seem clear.
Stocks have rallied on the belief that less regulation will increase the profitability of many U.S. publicly traded corporations. Bank stocks in particular have led the markets higher in anticipation of a partial dismantling of the Dodd-Frank Act along with the benefits that come with higher interest rates.

In what has become an autumn tradition, Bob Landaas addresses Landaas & Company clients at the 2016 investment outlook seminar, explaining the latest issues and trends affecting investment portfolios.

By Bob Landaas
The recent vote in Britain to leave the European Union sparked a sell-off in global stock markets and gyrations in currency markets.
Although markets have recovered much of the immediate losses, it is too early to tell if we are over the worst of the recent volatility. While we do not know the ultimate effects of the British vote and we will not for many months, certain things appear likely to occur.

By Bob Landaas
With this bull market more than seven years old, it is natural to question when the good times will be over. Significant market downturns are normally brought on by recessions.
A recession at this point looks unlikely.
First-quarter gross domestic product (the broadest measure of U.S. economic output) rose an anemic 0.8%. Forecasts call for GDP to average 2% or more in the coming quarters. In the majority of cases, stock prices improve along with improving economic growth.

By Bob Landaas
Today, April 28, is the day when this bull market becomes the second longest in U.S. history.
Now, just over seven years in length, the recovery that began in March 2009 has avoided bear market territory for 2,607 days. The longest bull market began in October 1990 and lasted 9½ years to March 2000.

By Bob Landaas
Recent stock market volatility has created concerns among some investors about the durability of this bull market, which is now almost seven years old.
The abrupt slowdown in China, its effects on the emerging markets, the continued slide in oil prices, higher short-term interest rates from the Fed and a stronger U.S. dollar all have taken blame for the recent downturn in stock prices.
As always, it is important to discern whether problems are short-term or whether they will linger with more pronounced, lasting consequences.

By Bob Landaas
The need for higher interest rates has diminished since the summer. Recent signs point to a slowing domestic economy while globally, economies are still struggling. The Fed has kept short-term interest rates near zero since the end of 2008. The low rates have helped stimulate economic growth, so the concern, of course, is that higher interest rates may serve as a drag on the economy.