Schwab Market Outlook: On the Path to Recovery
2021 Schwab Market Outlook
Global Outlook: New Cycle, New Leadership
As 2020 draws to a close, economic momentum is fading with infection rates on the rise, governments responding with more lockdowns, and few prospects for any major near-term fiscal stimulus.
Fixed Income Outlook: Calmer Waters
Ten-year Treasury bond yields may rise as high as 1.6% in 2021, reflecting prospects for faster economic growth.
U.S. Market Outlook: Reaching Better Days?
Stocks closing out 2020 having crossed the COVID chasm; but the economy has more rough terrain to traverse.
How Rising Corporate and Federal Debt Could Affect Your Investments
Federal and nonfinancial corporate debt are near historic levels. Here’s why it matters—and how you might adjust your portfolio in response.
What to Expect from the “Lame Duck” Congress
Debate over another round of coronavirus aid and economic stimulus likely will be at the top of the agenda for the post-election session.
Market Reacts to Election & Possible Vaccine
America voted, and while some uncertainty remains—especially regarding control of the Senate—a new political configuration is taking shape. So what’s the market impact?
Planning & investing
When Should You Sell? Part 1: Stocks and Bonds
Successful investing is about what you buy and when you buy it, but also what you sell and when you sell it. So how do you decide which stocks and bonds to sell when?
Near or in retirement
3 Steps to Prepare for Early Retirement
Retiring earlier than you planned may not be your first choice, but you can take steps to shore up your portfolio to help achieve your retirement goals.
Your questions about volatility
- Will the Federal Reserve and government stimulus spending eventually lead to inflation?
Schwab’s view is that the greater near-term threat is deflation, not inflation, and that the risk of inflation in the next few years is limited.
To produce inflation, money has to be loaned and/or spent, and must drive up demand relative to supply—as the adage goes, inflation is “too much money chasing too few goods.” If money sits on the balance sheets of banks or is saved by consumers, then prices for goods and services don’t necessarily rise.
Right now, demand is down sharply as consumers remain at home. Consumers are also spending less as unemployment continues to rise.
For other reasons why we don’t think inflation is likely—the “output gap,” consumer psychology, the strength of the dollar, and workforce demographics, to name a few—.
- How can I take advantage of market volatility as a trading opportunity?
First, make sure you're mentally prepared to manage the risks involved with trading in volatile markets and firm up your trading plan.
Then, focus on stocks trending with the market. Watch for stocks that are breaking through their usual resistance level--when prices are moving rapidly, an upside breakout can be followed by an immediate and substantial run to higher prices. At the same time, a reversal from a false breakout can come very quickly, so consider a stop-loss order to potentially limit your loss in case the price falls a certain distance below the breakout point. (Stop-loss orders can only potentially limit losses because there are no guarantees that stop orders will be executed at or near the stop price.)
Last, consider shorter-term strategies to exit trades quickly--since profits in volatile markets can vanish and turn into losses faster than you expect. For more details on all these strategies, read .
- I'm retired. Can I skip taking Required Minimum Distributions (RMDs) this year?
Yes. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, recently passed into law, includes a provision that allows retirees to forgo taking RMDs from IRAs or 401(k)-type plans this year.
For more frequently asked questions about coronavirus-related changes to RMD rules, read Can You Forgo Taking RMDs in 2020?
Concerned about how recent market volatility may affect your investments?
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