If you are like many investors, the wild swings in the markets since the coronavirus pandemic began have made you wonder what, if anything, you should be doing. While every investor's situation is different, CFP® professionals Christina Ubl and Adam Robert sat down for their inaugural audiocast to answer the most common questions asked about Covid-19, the stock market, and some ways you can help calm your worries.
Money and You
There's been talk about the possibility of the U.S. economy "going off a cliff" at the end of this calendar year.
What is this "cliff" pundits are referring to? It's actually a possible culmination of a number of government tax and benefits changes scheduled to impact our economy simultaneously. Specifically, the Bush tax cuts and payroll tax cuts are due to expire (which would impact workers' take home pay) and extended unemployment benefits will also expire (which would eliminate an income source for those out of work.) To further complicate the situation, higher Medicare taxes will take effect and certain government discretionary spending is scheduled to halt.
There are ways to manage it.
Natural disasters, European and US debt concerns, corporate personnel turnovers, credit downgrades, political turmoil in the Middle East, ever-changing domestic employment and housing figures – all of these factors have created a yo-yo effect on stock markets worldwide. It seems we need to continue to expect the unexpected when it comes to the economy and investments.