Daily Archive: May 12, 2020

It’s never a good idea to let yield drive your investment decision — especially now

One of the most important lessons I’ve learned in my years as an active market participant and a portfolio manager is to never let yield drive the construction of one’s investment portfolio.

That said, falling interest rates have created a real challenge for those living off of the income generated from their retirement savings, leaving many with little choice but to onboard excessive risk into their portfolios. This includes shifting entirely to dividend stocks or, worse, private and illiquid mortgage pools.

Unfortunately, the outlook for yield-hungry investors isn’t a favorable one, with interest rates expected to continue to remain at or below record lows while dividend cuts are only just getting started.

According to Howard Silverblatt, a senior index analyst for S&P Dow Jones Indices, 16 companies in the S&P 500 have cut their dividends so far, with 31 suspensions since mid-March. Among the notable suspensions are Boeing, Delta Air

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Australia says China suspension of beef imports not tied to call for COVID-19 inquiry By Reuters

© Reuters. Workers look on as beef cattle imported from Australia leave a cargo ship at a port in Qingdao

SYDNEY (Reuters) – China decision to ban imports from four of Australia’s largest beef processors was not a response to Canberra’s call for independent inquiry into the origins of COVID-19, Australia’s Minister for Trade Simon Birmingham said on Tuesday.

Birmingham had earlier said in a statement that Kilcoy Pastoral Company, JBS’s Beef City and Dinmore plants, and the Northern Cooperative Meat Company have been banned from exporting beef to China due to issues with labelling.

The suspension of the beef shipments came as ties between Australia and China publicly soured, although Birmingham said he did not believe it was retribution by China over the call for an inquiry into the orgins of the coronavirus that causes COVID-19.

Disclaimer: Fusion Media would like to remind you that the data contained in
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Reopening the U.S. economy too soon could cause a ‘double-dip’ recession

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When the coronavirus erupted in the United States, it triggered quarantines, travel curbs and business shutdowns. Many economists predicted a V-shaped journey for the economy: A sharp drop, then a quick bounce-back as the virus faded and the economy regained health.

Others envisioned a slower, U-shaped course.

Now, as President Donald Trump and many Republicans press to reopen the economy, some experts see an ominous risk: That a too-hasty relaxation of social distancing could ignite a resurgence of COVID-19 cases by fall, sending the economy back into lockdown. The result: a W-shaped disaster in which a tentative recovery would sink back into a “double-dip” recession before rebounding eventually.

“The push to reopen the economy is making a W-shaped recovery very much more likely,” said Jeffrey Frankel, professor … Read More