The stock market is going to tank at some point. Whether that happens next week, next month, or next year is anyone's guess. It's actually pretty common for the stock market to undergo corrections , where it loses at least 10% of its value but less than 20%. Full-blown stock market crashes are, thankfully, less common. But to some degree, they're also unavoidable. So it's best to be prepared to face one, whether it happens in the near term or not. Here are a few things you can do to gear up for an extreme drop in stock values. Image source: Getty Images. 1. Load up on emergency savings You never know when life might throw you a curveball, whether it's a lost job or a roof that decides to cave in and leave you with an emergency repair on your hands. That's why it's so important to have a well-funded savings account. In fact, as a general rule, you should aim to have enough money in savings to cover three to six months of essential bills. Loading up your emergency fund … [Read more...] about A Stock Market Crash Is Inevitable. Here’s How to Prepare
Since the benchmark S&P 500 ( SNPINDEX:^GSPC ) bottomed out in March 2020, investors have been treated to historic gains. It took less than 17 months for the widely followed index to double from its closing low during the pandemic. Further, the S&P 500 gained 27% last year, which is well over double its average annual total return of 11%, including dividends, since 1980. But if history has demonstrated anything, it's that volatility, crashes, and corrections are a normal part of the investing cycle, and the price of admission to what's arguably the greatest wealth creator on the planet. In 2022, we may well witness a stock market crash , and one of the following 10 factors could be the catalyst that causes it. Image source: Getty Images. 1. The spread of new COVID-19 variants Arguably the most glaring concern for Wall Street continues to be the coronavirus and its numerous variants. The unpredictability of the spread and virulence of new COVID-19 strains … [Read more...] about 10 Reasons the Stock Market Could Crash in 2022
Despite an uptick in volatility over the past couple of weeks, it's been another slam-dunk year for the stock market. Through Tuesday, Dec. 7, the benchmark S&P 500 ( SNPINDEX:^GSPC ) had gained nearly 25%. To put this figure into context, the widely followed index has averaged an annual total return, including dividends, of around 11% since 1980. There's no mincing words: It's been a good year for many big-name companies. But history also shows us that stock market crashes and double-digit percentage corrections are commonplace. As we get ready to steam forward into a new year, the following seven factors stand out as the biggest threats to the stock market in 2022. Image source: Getty Images. 1. The Federal Reserve panicking over inflation Arguably the biggest concern for Wall Street in 2022 is how the Federal Reserve handles rapidly rising inflation (the rising cost for goods and services). Throughout 2021, Federal Reserve Chairman Jerome Powell has … [Read more...] about The 7 Biggest Threats to the Stock Market in 2022
To revive his sweeping Build Back Better climate-change and social-spending legislation, President Biden plans to make it, well, less sweeping. This week, Biden announced plans to split up his Build Back Better agenda into at least two parts: separating the climate provisions from other initiatives in the hopes that it'll help them pass sooner rather than later. "I think we can break the package up, get as much as we can now, and come back and fight for the rest later," he said during a rare two-hour news conference on Wednesday evening, the eve of his one-year anniversary in office. Last month, a vote on the full bill came to a halt when Senator Joe Manchin (D-W.Va.), a key swing vote, announced his opposition. Manchin has, however, suggested that he might back various climate provisions, a sign that he may favor a more focused bill. For green-energy businesses and electrical-vehicle makers, the move brings them a step closer to what will likely be boom … [Read more...] about Biden’s Build Back Better Agenda Gets Second Chance
Steve Jobs famously said that asking customers what they wanted in the way of a new product or service was a waste of time. He said it was Apple's job to anticipate their needs because "customers don't know what they want until we've shown them." There's been a lot of discussion about whether this means that market research is basically useless or whether it means that the way market research has been used by many businesses isn't helpful, instructive or productive. I'd argue that it's the latter. I don't think Steve was condemning an entire industry, although he didn't have any great love for gathering or relying upon numbers for numbers sake. His basic disinterest stemmed from the issue that-- way back then and right up to today--too many companies use market research like a drunk uses a lamppost, for support rather than illumination. Or worse yet, they approach it like the guy looking for his lost keys beneath the street lamp because that's where the light is best. Convenient, … [Read more...] about Does Your Customer Research Prove What You Already Know?
If Robinhood got one thing spot on, it's that free sells. Prior to setting off a stock market firestorm last week, investors in Robinhood , the Menlo Park, California-based trading platform, were only too happy to keep fueling its growth. Now they have no choice. Robinhood faced crippling cash demands brought on by a Reddit subgroup named WallStreetBets, which was driving up the stock price of companies, including GameStop and AMC, that had been targeted by well-known short sellers. The stated goal: squeeze the shorts. The ensuing volume of orders pushed Robinhood into tricky territory with its cash position, when the clearinghouse that helps the firm process and settle trades asked the company to put up more capital to meet margin requirements. Robinhood responded by restricting trading on 13 stocks on Thursday, infuriating the WallStreetBets investors and sending prices on those stocks down. To stabilize itself, Robinhood, which was founded in 2013 by Vlad Tenev and … [Read more...] about Robinhood Struggles With the Monster It Created
At this point, a lot of people are experiencing pandemic-related fatigue. We're tired of wearing masks, having to practice social distancing, and hearing negative news on the COVID-19 front. So the recent discovery of the omicron variant is clearly the last thing a lot of people need right now. At this point, it's unclear as to how much of a game changer the omicron variant has the potential to be. While initial evidence shows that the variant is highly transmissible, we don't know if it causes more severe disease. Similarly, we don't know how effective our existing array of COVID-19 vaccines are at attacking it. Image source: Getty Images. But one thing we do know is that the stock market has already experienced its share of turbulence this week in light of the omicron news. And that may be a scary thing for investors to stomach. But should you dump your stocks due to omicron variant fears? The answer is actually pretty simple. Stay the course This week's stock … [Read more...] about Should You Sell Off Stocks Due to the Omicron Variant?
by Anthony Lark “Let’s say goodbye to all that stale pretence and manufactured pomp” Until the collective nightmare that was 2020, many of the so-called high-end hotels had a reputation for trying to convince guests to pay for often dingy guestrooms lacking any real views inside an otherwise ornate structure with a storied, celebrated past, where the first impression was a check in often akin to applying for a bank loan. Defined as “luxury”, in the good old days they got away with it. Over the thirty years I spent running Amanpuri and Trisara on Phuket, I heard hundreds of people complain of feeling ripped off at “legendary” and “iconic” hotels by staff that rudely treated them as anything but guests. How many of us did not tip the head waiter after dinner on the first night, to return the next evening and find ourselves stashed at a table by the kitchen door, or getting ushered past the prime and utterly empty deck chairs (with a book on them) by an indifferent pool boy … [Read more...] about What has the pandemic taught hotels about luxury. Is ‘less’ more?
By Li Yuan , The New York Times Company Like many ambitious young Chinese, Zhao Junfeng studied hard in college and graduate school so he could land a coveted job as a programmer at a big Chinese internet company. After finishing graduate school in 2019, he joined an e-commerce company in the eastern Chinese city of Nanjing, got married and adopted a cat named Mango. In November 2021, he moved to Shanghai to join one of China’s biggest video platforms, iQiyi. He was on track to achieve a much-desired middle-class life, documenting his rise on his social media account. Then barely a month into his new job, he was let go when iQiyi laid off more than 20% of its staff. The ranks of the unemployed technology workers are swelling as China’s once vibrant internet industry is hit by a harsh and capricious regulatory crackdown. Under the direction of China’s top leader, Xi Jinping, the government’s unbridled hand is meddling in big ways and small, leaving companies … [Read more...] about As Beijing takes control, Chinese tech companies lose jobs and hope
Soon after King Soopers and the union announced a tentative agreement Friday in a 10-day labor dispute, the picket lines were gone and parking lots at the grocery stores around the Denver area were once again filling up. Members of the United Food and Commercial Workers Local 7 will decide Monday if the agreement struck between union and company negotiators will be permanent. The strike that began Jan. 12 covered more than 8,000 King Soopers employees at 78 stores in Boulder, Parker and across the metro area. The strike was the first among Colorado grocery store employees since 1996 when union members walked off the job at King Soopers. Safeway and Albertsons eventually locked out workers. That strike lasted 42 days. This time, workers’ complaints that the company hasn’t adequately supported or protected them during the coronavirus pandemic fueled anger over other issues, including wages, the outsourcing of jobs and workplace safety in the face of rising crime. Labor … [Read more...] about With Friday’s deal, King Soopers labor dispute now in workers’ hands