Tuesday ended a four-day market rally but October looks good, the Fed vice chair says the economy could take a year to return to pre-pandemic levels, and Walmart's Black Friday will be spread out over three events. Here's how the headlines could affect your money:
Tuesday's market losses broke a four-day winning streak as investors eyed developments on the coronavirus stimulus package. Nonetheless, October market gains so far have more than made up for September's losses.
It's a good reminder that buying and holding is often the best strategy to avoid worrying about the market's daily movements. Neal Solomon, CFP, likens the market to a man climbing a staircase with a yo-yo. "If your eyes are stuck on the yo-yo, you see it go up and down," he says. "But the big trend is that the man is climbing the stairs. He is going up even when the yo-yo goes up and down."
Federal Reserve Vice Chairman Richard Clarida said Wednesday that he expects the third-quarter GDP report to show sharp improvement, but that it will likely be another year or more before the GDP and the employment rate recover to pre-pandemic levels.
"So far so good in terms of the recovery, but a ways to go not only in the U.S. but globally," he said.
Video by Stephen Parkhurst
Walmart said Wednesday that it is divvying up its Black Friday sale into three separate November events that kick off online, in a Covid safety-related effort to dilute holiday shopping crowds. Each sale will focus on different types of products, so plan ahead.
Buy and hold is a relatively hands-off investment strategy of buying a stock or other investment type with a "set it and forget it" long-term mindset.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
More from Grow: