Despite more than 108,000 US deaths from Covid-19 and deep job losses caused by the economic shutdown to prevent even more fatalities, US stock prices are hovering within 8% of their all-time peaks reached earlier this year. How does this square with the bleak news of the past month? We share our thoughts on a turbulent period of social unrest and economic uncertainty following a brief market summary.
The surging popularity of index funds—and the corresponding exodus from actively managed funds—is a worrisome trend for Wall Street. And so the bankers and brokers and analysts have responded with dire predictions. The warning goes like this: as use of passively managed index investing grows, market prices will become distorted as fewer shares are traded and “price discovery” becomes more difficult. That’s bad news for markets and investors too. Should you be concerned? Let’s look at the evidence after reviewing Q1 quarterly returns.
The New York Stock Exchange and Nasdaq are preparing to open for business as usual on Wednesday following an extraordinary storm that crippled many parts of Manhattan and prompted widespread power failures.
Due to Hurricane Sandy, the NYSE was closed Monday, October 29, 2012. The NYSE and other US stock and bond markets will remain closed Tuesday, October 30.