Market

Back in March, a couple who had recently sold their business called me to express concerns about their decision to sell and retire. With Covid-19 raging, the stock market quickly dropped in value and their retirement savings were in decline. They asked a straightforward question: Did they need to worry or worse, consider going back to work? To address their concerns, we conducted a financial "stress test." It's a simulation of scenarios to evaluate if their financial plan and investments could withstand the chaos in the stock market. Even though their investments had declined more than 10%, the test assured them their portfolio was well positioned to withstand further volatility. With this information in hand, the couple quickly dropped any thought of returning to work. While the impact...

Treasury Secretary Steven Mnuchin moved Friday to downplay his department's decision to pull the plug on several Federal Reserve programs, saying there's plenty of money around to provide funding where it is needed. "This was a very simple thing. We're following the intent of Congress," Mnuchin told CNBC's Jim Cramer during a "Squawk on the Street" interview. After working together through much of the year on a series of lending and market liquidity programs, the Treasury and Fed found themselves at odds Thursday after Mnuchin said Treasury would not be seeking to extend a handful of lending programs instituted during the early days of the coronavirus pandemic. Funding for the programs is set to expire at the end of the year. They cover corporate bond buying, loans to state and local go...

Times of stress tend to amplify our human nature, including the way that we spend and save money. While stuck at home during Covid-19, for example, some might be itching to spend or take advantage of upcoming Black Friday and Cyber Monday sales — experts say that stress-shopping is one way we attempt to feel in control of our lives. Others might be more anxious about finances or worried about job security. Even when there's no pandemic, the way that people spend or save says more about a person than whether they have self control. Experts don't exactly know why you end up with a propensity to splurge or save, but part of it likely has to do with your family upbringing, says Scott Rick, associate professor at the Michigan Ross School of Business, whose research focuses on the emotional caus...

BRUSSELS: The European Union and the United States should resolve their trade disputes after US President-elect Joe Biden takes office in January in a "new transatlantic agenda", the EU executive said on Wednesday (Dec 2), laying out its wish-list for better ties. After four years of US President Donald Trump's "America First" agenda during which Washington imposed tariffs on Brussels on national security grounds, the EU is now looking for close cooperation with Biden on almost all issues. The United States and the EU "must work closely together on solving bilateral trade irritants", the European Commission said in a proposal to EU governments, noting that EU-US commerce accounts for a third of world trade. However, the 12-page document presented by EU foreign policy chief Josep Bor...