Month: April 2020

(Bloomberg) — Three years ago, America’s largest pension fund made an unusual investment. It bought so-called tail-risk protection, a kind of insurance against financial catastrophe. In a market meltdown like the one sparked by the coronavirus, the strategy promised a massive payout — more than $1 billion.If only the California Public Employees Retirement System had stuck with the plan. Instead, Calpers, as the fund is known, removed one of its two hedges against a bear market just weeks before the viral outbreak sent stocks reeling, according to people familiar with its decision.The timing couldn’t have been worse. The fund had …read more […]

(Bloomberg) — Credit risk eased dramatically now that the Federal Reserve’s unprecedented effort to save corporate debt just got even bigger, adding a backstop to what could be hundreds of billions of dollars worth of bonds that are expected to fall to junk.The central bank will expand its bond-buying program to include debt that was investment-grade rated as of March 22 but was later downgraded to no lower than BB-, or three levels into high yield, according to a statement Thursday. It’ll also buy exchange-traded funds that track speculative-grade debt, which surged the most in a decade following the announcement. …read more […]

It’s always nice to have a backup.
An extra set of batteries in case the flashlight goes out…
A spare key for when you lock yourself out of the house…
Or, in our case, an emergency plan for when the market goes off its meds.
I’m sure you know the old saying “I’d rather have it and not need it than need it and not have it.”
Well, over the past couple of weeks, you definitely needed this backup plan.
The major U.S. stock indexes collapsed more than 30% in less than a month. And many Americans found themselves sheltering in place until further notice.
But if …read more […]

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Procter & Gamble’s dividend history is long. And with the recent market drop, it’s a better buying opportunity. The stock might be a great addition to income portfolios. So, let’s take a look at the business, dividend history and payout safety going forward.
Procter & Gamble Business Overview
Procter & Gamble (NYSE: PG) is a $292 billion dollar business, based on market cap. The company operates out of Cincinnati, Ohio and it has 97,000 employees. Last year Procter & Gamble had $68 billion in sales and that breaks down to $698,000 per worker.
The company operates within the consumer sector. In fact, it’s …read more […]

The company had a good month in spite of coronavirus outbreak Continue reading… …read more […]

Former National Economic Council Director Gary Cohn has a plan to put Americans back to work after the coronavirus outbreak is brought under control. …read more […]

Fundstrat’s Tom Lee says history shows the speed of a market recovery is tied to the speed of collapse. That could mean a return to all-time highs this year. …read more […]