TheAmerican mathematician Claude Shannon famously established a lower bound forthe number of possible moves in a typical chess match: around 10120. That’s 10with 119 zeroes after it. Reflecting on when the COVID-19 crisis began tounfold across the globe, I think the Shannon number adequately captures thebreadth of possible economic outcomes at the time.

Stocks advanced relentlessly last week on positive COVID-19 developments, encouraging economic data, and a supportive policy shift in the Fed’s approach to its target inflation rate.  The Dow Jones Industrial Average increased by 2.59%, while the Standard & Poor’s 500 jumped 3.26%. The Nasdaq Composite index leaped 3.39% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.19%. 

Stock prices rallied in July as further development of a COVID-19 vaccine and better-than-expected corporate financial reports encouraged investors.

Stocks were mixed last week as investors reacted to positive economic data, progress on a COVID-19 vaccine, and the continued nationwide increase of COVID-19 cases.

The recent market declines triggered by the COVID-19 pandemic raise important questions for those in or near retirement. When you add in historically low yields on fixed income investments and an uncertain economic future, questions arise about how retirees will weather the storm. Among other things, some may be questioning whether the 4% rule on investment withdrawals remains viable.

If you’re like most people, when you hear the phrase “legacy planning,” youprobably think about how you’ll pass your assets to your heirs. 

I write a lot about the state of retirement in America and how certain saving behaviors can help set you up for success. But until recently we hadn’t fully addressed the elephant in the room: the costs of health care and long-term care in retirement.

If you work and save from age 18 to age 63, you’ll spend around 45 years preparing for a retirement that spans about half as long—just over 22 years.* Your personal circumstances will determine whether you remain in the workforce (and continue saving) longer.

When Jerome Powell presides over his first Federal Open Market Committee meeting as the new Federal Reserve chairman on March 20–21, the seat will be less comfortable than it was just two months ago, when the U.S. Senate approved his nomination.

Over the past few months, I’ve been asked this question more than any other. In 2017, Bitcoin, the world’s first cryptocurrency, rose by almost 1,200%, prompting excitement and bafflement. My answer: I’m enthusiastic about the blockchain technology that makes Bitcoin possible. In fact, Vanguard is using such technology. As for Bitcoin the currency? I see a decent probability that its price goes to zero. 

 Remember the days before theinternet? It was almost impossible to access certain information, like songlyrics. People would go years singing the wrong words while insisting they wereright. 

A recent online study,* which had a significantly larger sample size, foundthat only one-third of retirees are confident in their ability to livecomfortably throughout retirement. 

In the past, the Fed said it would consider adjusting short-term rates when inflation approached 2 percent. But in light of 2020’s many challenges, the Fed’s new policy may allow inflation to run above 2 percent for a period of time before any shift in monetary policy is considered.