Weekend reads: How to invest when the stock market is in shock

Weekend reads: How to invest when the stock market is in shock

The worst four-month start to the year for the S&P 500 since 1939 was bad enough, but this week’s volatility in the stock market was shocking: a 932-point rise for the Dow Jones Industrial Average on May 4, followed from a rise of 1,063 points to decline the next day.

There were signs of panic selling on the New York Stock Exchange on Thursday, and company insiders accelerated their selling activity, rather than scooping up discounted shares of their companies.

And now? What can you do to protect your investment portfolio or take advantage of volatility? Jeff Reeves outlines eight defensive strategies.

If you’re looking to bail out, Market Extremes’ Hayes Martin expects a bounce that could provide this opportunity to sell.

For a longer-term view, Brett Arends spoke with Ben Inker, co-head of asset allocation at GMO in Boston, who has specific advice on where investors building nest eggs retirement should invest their money.

Learn more about the gloomy stock market:

Protect your money when interest rates rise

The Federal Reserve took two important policy steps this week to fight inflation by cutting liquidity. Bond investors anticipating Fed actions had already driven interest rates much higher, fueling falling stock and bond prices this year and sparking fears of a near-term recession.

Here’s some recent coverage and advice on how to get through tough times for your portfolio, savings, and investments:

A reality check after the bull market

set of facts

“Unicorn” startups — those valued at $1 billion or more — were hot items during the long bull market. One example was Carvana, which disrupted the used car market with streamlined service. Times have changed, as you can see from the chart above. Here’s how Carvana’s plight applies to other unicorns.

Another reality check after the bull market: ETF IPO slips 8% amid market carnage ahead of Bausch + Lomb expected prices

Zillow highlights the uncertainty

Zillow

In November, Zillow announced it would exit its home buying and selling business to focus on its core online home listing and agency services, as well as mortgages. The company released its first-quarter results after the May 5 close and said revenue from its internet, media and technology core grew 10%, ahead of its expectations.

It was certainly a good quarter – better than analysts had expected. But in this market, all eyes are on corporate forecasts during earnings season. Zillow shares plunged 15% in premarket trading on May 6 after CEO Rich Barton said the outlook for the U.S. housing market “could be choppy in the near term.”

Retreat places for all needs and desires

State Capitol Building in Dover, Del. .

Getty Images/iStockphoto

Silvia Ascarelli writes the “Where Should I Retire?” column. This week she is helping a couple who are planning a retirement move and want space for a large garden, goats and chickens. Here are three possible locations.

Check out MarketWatch’s retirement locator tool for your own custom search. It includes data for over 3,000 US counties and incorporates climate risk.

Once there : 5 tips for finding a great part-time job in retirement

The results of physical activity studies may surprise you.

A threat to Apple

MarketWatch photo illustration/iStockphoto

Apple has an incredibly loyal customer base, and not just because iPhones are so reliable. The company says it protects consumers through strict control over the software running on its devices. But politicians and regulators are targeting some of the restrictions, as Jon Swartz reports.

An amazing thrift store find

Laura Young made a new friend at Goodwill for $34.99.

San Antonio Art Museum

“Shopping” doesn’t necessarily mean looking at the latest fashions and high prices. Digging around can reveal a real bargain, as was the case at a Goodwill store for this art collector in Texas.

Forget about investment fads and read this book – or spread the word

Getty Images

The problem with reading a book that gives well-measured advice on investing is that it’s best read by someone who’s more inclined to follow fads than proven methods for building wealth. The tortoise beats the hare.

Here are 11 critical lessons on money and investing from Brian Feroldi, author of “Why Is the Stock Market Going Up?” Everything you should have learned about investing in school, but you didn’t.

The effects of a tight labor market

Did you wait longer for the food to be delivered?

Brandon Bell/Getty Images

High inflation and a tight labor market make it very difficult for businesses to balance prices and expenses. Lyft shares fell after the company said it would increase spending to attract more drivers. Ride-sharing rival Uber tried to forestall a similar market reaction by raising its earnings announcement, but its stock also fell.

Domino’s Pizza is also suffering from a shortage of drivers.

Starbucks is also in transition as part of the unionization of part of its workforce. Another challenge for the company is changing consumer tastes, as Tonya Garcia reports.

What is your fitness tracker for?

Getty Images

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