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As Wealthy Depart For Second Homes, Class Tensions Come To Surface In Coronavirus Crisis

Topline: As New York City’s coronavirus cases exploded in recent weeks, residents fleeing to second homes have come under intense scrutiny and push-back, prompting officials in multiple states to create highway checkpoints screening for New Yorkers and a national travel advisory for the entire Tri-state area, highlighting the dramatic roles class and wealth will play in the pandemic.

  • With over 56,000 coronavirus cases in New York, privileged New Yorkers with secondary homes are fleeing the City with massive effect on vacation home communities: the population of Southampton has gone from 60,000 a few weeks ago to 100,000 and rental prices in Hudson Valley rocketed from $4,000 to $18,000 per month—posing a threat to small-town hospitals that are ill-equipped to handle caring for high numbers of coronavirus patients.
  • In wealthy New England island communities like Nantucket, Martha’s Vineyard and Block Island that are heavy with secondary homes and short on hospital infrastructure, officials are going so far as to cancel all hotel, Airbnb and VRBO reservations while stationing state troopers and the National Guard to maintain flow on islands and, in the case of Rhode Island, instating 14 day mandatory quarantine on all people traveling to stay in the state from New York, New Jersey or Connecticut.
  • As outrage has grown at the privileged fleeing the city while middle and working classes remain confined in New York City apartments, there’s been social media clapback at ostentatious displays of wealth in isolation: Geffen Records and Dreamworks Billionaire David Geffen ultimately deleted his Instagram of his $570 million megayacht captioned: “Sunset last night..isolated in the Grenadines avoiding the virus. I’m hoping everybody is staying safe” after it sparked outrage on social media.
  • New York City’s poorer boroughs are hit hardest by coronavirus: Brooklyn and Queens, where median income is  $56,015 and $64,987, respectively, remain the epicenter of COVID-19, compared to Manhattan with average income of $82,459, which has been less permeated by the virus and is home to many of Manhattan’s wealthiest enclaves—and those most likely to have residents with second homes elsewhere.
  • On Saturday, President Trump said he was considering quarantining parts of New York, New Jersey and Connecticut, then, backed down and issued a domestic travel advisory for the tristate area that discourages residents of these states from non-essential domestic travel after “very intensive discussions” at the White House on Saturday night, said Dr. Anthony Fauci on CNN today: “The better way to do this would be an advisory as opposed to a very strict quarantine, and the President agreed.”
  • “Due to our very limited health care infrastructure, please do not visit us now,” reads a travel advisory from Lake Superior’s Cook County in Michigan, exemplifying vacation towns’ plea to travelers and second home owners across the country to stay away.

Background: Coronavirus cases in the United States have skyrocketed to 124,000, with deaths doubling from 1,000 to 2,046 in two days. Since those with COVID-19 can be asymptomatic for days, their presence in remote communities may be deadly, as they can spread the virus and wreak havoc on rural hospitals. The clash between wealthy and poor, also creates state-versus-state hostility, as federal support is limited and essential to states overcoming coronavirus.

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Source: As Wealthy Depart For Second Homes, Class Tensions Come To Surface In Coronavirus Crisis

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The Market’s in Panic Mode.. Stock Markets Plunge 12% Amid Coronavirus Fears

Mandatory Credit: Photo by JAMES GOURLEY/EPA-EFE/Shutterstock (10584160h)
A view of digital market boards at the Australian Stock Exchange (ASX) in Sydney, Australia, 16 March 2020. The ASX dropped more than 7 percent at the opening of trade as concerns over the coronavirus and COVID-19 pandemic grow. Australian Stock Exchange (ASX) drops at opening on coronavirus concerns, Sydney, Australia – 16 Mar 2020

(Bloomberg) — The stomach-turning ride on global financial markets took a dramatic turn Monday, with U.S. stocks plunging the most since 1987 after President Donald Trump warned the economic disruption from the virus could last into summer.

The S&P 500 sank 12%, extending losses as Trump said the economy could fall into a recessoin. Equities opened sharply lower after central bank stimulus around the world failed to mollify investors worried about the damage the coronavirus is inflicting on economies.

The negative superlatives for American stocks are piling up. The S&P wiped out its gain in 2019 and is now down almost 30% from its all-time high. The Dow Jones Industrial Average lost almost 13%, falling 3,000 points to close at at two-year low. The Russell 2000 had its worst day on record, losing more than 14%.

“This is different. The thing that is scarier about it is you’ve never been in a scenario where you shut down the entire economy,” said Steve Chiavarone, a portfolio manager with Federated Investors. “You get a sense in your stomach that we don’t know how to price this and that markets could fall more.”

While the Fed cut rates toward zero and stepped up bond buying, investors continued to clamor for a massive spending package to offset the pain from closures of schools, restaurants, cinemas and sporting events. Companies around the world have scaled back activity to accommodate government demands to limit social interaction.

Here are some of Monday’s key moves across major assets:

  • All 11 groups in the S&P 500 fell, with eight of them down at least 10%.
  • The Dow Jones Industrial Average’s tumble from its record reached 30%.
  • Brent crude dipped below $30 a barrel for the first time since 2016.
  • Treasury yields retreated across the curve with moves most pronounced on the short end.
  • Shares tumbled in Asia and Europe, where the continent is now reporting more new virus cases each day than China did at its peak as more countries lock down.
  • The yen surged, the Swiss franc rallied and the dollar fluctuated.
  • Gold failed again to capitalize on the rush to havens and reversed an earlier gain to tumble.
  • Bonds declined across most of Europe, where a measure of market stress hit levels not seen since the 2011-2012 euro crisis.

The Fed and other central banks have dramatically stepped up efforts to stabilize capital markets and liquidity, yet the moves have so far failed to boost sentiment or improve the rapidly deteriorating global economic outlook. An International Monetary Fund pledge to mobilize its $1 trillion lending capacity also had little impact in markets.

The problem is, bad news keeps stacking up. The New York Fed’s regional gauge of factory activity plunged. Ryanair Holdings Plc said Monday it will ground most of its European aircraft while a consultant said the pandemic will bankrupt most airlines worldwide before June unless governments and the industry step in. Nike Inc. and Apple Inc. announced mass store closings.

“In normal circumstances, a large policy response like this would put a floor under risk assets and support a recovery,” Jason Daw, a strategist at Societe Generale SA in Singapore, wrote in a note. “However, the size of the growth shock is becoming exponential and markets are rightfully questioning what else monetary policy can do and discounting its effectiveness in mitigating coronavirus-induced downside risks.”

The yen rebounded from Friday’s plunge after the Fed and five counterparts said they would deploy foreign-exchange swap lines. Australian equities fell almost 10%, the most since 1992, even after the Reserve Bank of Australia said it stood ready to buy bonds for the first time — an announcement that sent yields tumbling. New Zealand’s currency slumped after an emergency rate cut by the country’s central bank.

Meanwhile, China reported Monday that output and retail sales tumbled in the past two months.

These are the main moves in markets:

Stocks

  • The S&P 500 fell 11.98% as of 4 p.m. in New York.
  • The Dow Jones Industrial Average plunged 12.93%
  • The Stoxx Europe 600 Index lost 4.9%, paring a drop that reached 10%.
  • The MSCI Emerging Market Index declined 6.3%.
  • The MSCI Asia Pacific Index decreased 3.7%.

Currencies

  • The Bloomberg Dollar Spot Index rose 0.2%.
  • The euro gained 0.5% to $1.1162.
  • The Japanese yen strengthened 1.8% to 105.94 per dollar.

Bonds

  • The yield on two-year Treasuries sank 14 basis points to 0.35%.
  • The yield on 10-year Treasuries declined 22 basis points to 0.73%.
  • The yield on 30-year Treasuries declined 22 basis points to 1.31%.
  • Germany’s 10-year yield climbed seven basis points to -0.47%.

Commodities

  • West Texas Intermediate crude fell 9.2% to $29.05 a barrel.
  • Gold weakened 4.3% to $1,463.30 an ounce.
  • Iron ore sank 2.5% to $86.10 per metric ton.

—With assistance from Claire Ballentine, Elena Popina and Elizabeth Stanton.

By Jeremy Herron and Vildana Hajric / Bloomberg

Source: ‘The Market’s in Panic Mode.’ Stock Markets Plunge 12% Amid Coronavirus Fears

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The spread of information is fast, so whatever happens makes the stock market crash fast. People are selling in panic as the market might go down more. The fact is nobody knows what will happen. The only thing that works always is being prepared for anything, invest for the long-term and keep rational. Want to know more about my research and portfolios? Here is my independent stock market analysis and research! STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio) https://sven-carlin-research-platform… Sign up for the FREE Stock Market Investing Course – a comprehensive guide to investing discussing all that matters: https://sven-carlin-research-platform… I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t Check my website to hear more about me, read my analyses and about OUR charity. (YouTube ad money is donated) http://www.svencarlin.com Listen to Modern Value Investing Podcast: https://svencarlin.com/podcasts/ I am also learning a lot by interning with my mentors: dr. Per Jenster and Peter Barklin at the Niche Masters fund. http://nichemastersfund.com #stockmarketcrash #market #stocks

Australia Headed for First Recession Since 1991, Analyst Says

Australia’s economy will record its first recession since 1991 as the hit from China’s virus-induced slowdown is amplified by slumping confidence and domestic disruptions from the outbreak intensifying Down Under, according to Bloomberg Economics’s James McIntyre.

Gross domestic product will fall 0.4 percentage point in the first three months of the year and 0.3 percentage point in the second quarter, ending a 28-1/2-year stretch of economic growth, he said in a report Monday.

“Isolations and domestic disruptions to contain the spread of the virus will have a mounting economic impact, which is likely to result in a further GDP contraction in 2Q and potentially beyond,” McIntyre said. “Stimulus, both fiscal and monetary, will help to reduce the damage, but is unlikely to be enough to offset the impacts.”

GDP will expand by just 0.4% in 2020, he forecasts, some 1.5 percentage points below his pre-coronavirus estimate.

The Reserve Bank cut interest rates last week and money markets are pricing in a further reduction in April, which would bring it to the estimated lower bound of 0.25% and open the door to unconventional policy. The government is finalizing a fiscal “boost” that could amount to A$10 billion ($6.6 billion) to support firms struggling with cash flow and help them keep on employees.

McIntyre predicts large budget deficits ahead as the automatic stabilizers — increased welfare payments and reduced tax collection — begin to take hold. That’s on top of the fiscal stimulus needed to boost demand and confidence.

Alan Oster, chief economist at National Australia Bank Ltd., expects the RBA will deploy unconventional policy as early as May, after reducing the cash rate to its estimated lower bound of 0.25% in April.

He sees the preferred option as yield-curve control — setting a target level for government bond yields at a specific duration — with the aim of flattening the yield curve and lowering the cost of debt funding.

Panic Selling

An all-out price war between the world’s biggest oil producers is adding to the prospect of a recession as the coronavirus wreaks havoc across the world. Panic reigned in currency markets Monday as orders from traders and algorithmic machines snowballed.

That saw the Australian dollar plunge almost 5% in less than 20 minutes, the biggest one-day decline since 2008. Australia’s benchmark S&P/ASX 200 stock index slumped 7.3%.

The Treasury and RBA estimate the impact on tourism and education from China’s shutdown and other virus fallout will cut 0.5 percentage point from GDP in the first quarter. That doesn’t include supply chain disruptions and is in addition to a 0.2 point cut from wildfires over summer.

The Economic Impact of the Wuhan Coronavirus Outbreak

China’s economy is grinding to a halt as the government scrambles to stop the spread of the deadly Wuhan coronavirus, fueling fears that efforts to contain the outbreak will have worldwide economic consequences.

Bill Evans, chief economist at Westpac Banking Corp., revised his economic growth forecasts Monday and predicts contractions in the first and second quarters of 0.3% respectively, before a sharp rebound in the second half.

McIntyre said the comparison with the 2003 SARS epidemic is problematic because of the massive increase of China’s importance to both the Australian and global economies. He notes that in the Australian Dollar Trade-Weighted Index of the exchange rate, the weighting of the renminbi rose to 30%, higher than any other currency in the 36-year history of the gauge.

The channels through which the reduction in domestic activity transmits during a pandemic were laid out in a 2006 Treasury paper whose author is Steven Kennedy, the current secretary to the Australian Treasury. That analysis saw the economy contracting 5% in the first year.

Transmission of the virus in Australia is now occurring, meaning disruptions and shutdowns of aged-care facilities, child-care centers and schools. Health authorities anticipate several months of disruptions from the virus.

The economy will bounce back, McIntyre said, noting that fourth-quarter GDP released last week showed several segments turning around, including housing and mining investment. China is also set to stimulate its economy, which traditionally benefits Australia.

Property prices Down Under have surged since late last year when the RBA resumed easing.

“How Australia’s housing market weathers the virus outbreak will be a key area of interest given the earlier downturn in construction activity,” he said. “Australia’s resources sector also stands well placed to benefit from a resumption of activity in China’s construction sector and stimulus measures.”

By Michael Heath / Bloomberg

Source: Australia Headed for First Recession Since 1991, Analyst Says

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Australia’s economy has spent the past year stuck in the slow lane, with growth and wages flat-lining. Now, with the economy hit by a combination of disastrous bushfires and the coronavirus cutting off the flow of Chinese tourists and students, some economists are raising the spectre of recession. Read more here: https://www.abc.net.au/news/2020-02-0… For more from ABC News, click here: https://ab.co/2kxYCZY You can watch more ABC News content on iview: https://ab.co/2mge4KH Subscribe to us on YouTube: http://ab.co/1svxLVE Go deeper on our ABC News In-depth channel: https://ab.co/2lNeBn2 You can also like us on Facebook: http://facebook.com/abcnews.au Or follow us on Instagram: http://instagram.com/abcnews_au Or even on Twitter: http://twitter.com/abcnews

Global Markets Plunge Over Coronavirus And Oil Price War Fears

Topline: Global stocks plunged after crude oil posted its biggest fall since the 1991 Gulf War after Saudi Arabia launched a price war with Russia.

  • Japan’s Nikkei index fell more than 5% on Monday, while stocks in Hong Kong and mainland China were also down as panicked investors in Asia flocked to safe-haven assets like government bonds and the Japanese yen.
  • European stocks followed suit, with London’s FTSE 100 index down almost 8% on Monday morning, France’s CAC 40 more than 7% and Germany’s DAX 6%.
  • The pan-European Euro Stoxx 50, measuring the Continent’s 50 largest companies, plunged more than 6% on Monday morning, its worst performance in more than a year.
  • U.S. futures were sharply down, with S&P 500 futures down more than 5%.
  • Oil prices plummeted with the benchmark Brent crude down to $33.20 a barrel, while West Texas Intermediate fell 31%, to $28.32 a barrel on Sunday.
  • The steep drop was triggered after Saudi Arabia announced it would raise production after OPEC’s deal with Russia to supply collapsed on Friday.

Big number: Some $90 billion ($140 billion AUD) was wiped off Australia’s markets on Monday, with the benchmark ASX falling more than 7%—its worst performance since the global financial crash.

What to watch for: Oil prices could drop to a low of $20 a barrel, Goldman Sachs analysts warned on Sunday, if the coronavirus continues to spread and the oil price war intensifies.

Key background: Global markets have posted some of their steepest falls since the 2008-2011 financial crisis with panicked moves from investors spooked by the potential impact of the coronavirus on the global economy, and an oil price war. The Federal Reserve’s emergency rate on March 3, 2020, provided a momentary confidence boost for the markets, which now will look for coordinated action from the G7 club of advanced economies to underpin the global economy.

Tangent: Some 110,000 people globally have been infected with Covid-19 to date, but as of Monday the number of new cases in China, where the pneumonia-like virus was detected, appear to be falling, while cases around the world continue to prompt strict quarantine measures, particularly in Italy, now the largest cluster of Covid-19-related deaths outside China.

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I am a breaking news reporter for Forbes in London, covering Europe and the U.S. Previously I was a news reporter for HuffPost UK, the Press Association and a night reporter at the Guardian. I studied Social Anthropology at the London School of Economics, where I was a writer and editor for one of the university’s global affairs magazines, the London Globalist. That led me to Goldsmiths, University of London, where I completed my M.A. in Journalism. Got a story? Get in touch at isabel.togoh@forbes.com, or follow me on Twitter @bissieness. I look forward to hearing from you.

Source: Global Markets Plunge Over Coronavirus And Oil Price War Fears

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The economic consequences of the coronavirus epidemic have sparked a conflict among major oil-producing nations. Last week, oil producers were unable to agree on a reduction in production volumes, resulting in a price war between OPEC and Russia. That has sent oil prices plummeting. The price of oil collapsed by 31.5 percent at the start of trading, the lowest price since January 1991. As a reaction, stock markets fell sharply this Monday: In Tokyo, the Nikkei Index lost more than 5 percent, while the Hang Seng in Hong Kong fell almost 4 percent. Australia’s ASX Index fell particularly hard with a minus of 7.3 percent and in Germany, the DAX tumbled almost 8 percent at the start of trading. The picture around the Gulf is even more dramatic – markets have shed up to around 10% there. Subscribe: https://www.youtube.com/user/deutsche… For more news go to: http://www.dw.com/en/ Follow DW on social media: ►Facebook: https://www.facebook.com/deutschewell… ►Twitter: https://twitter.com/dwnews ►Instagram: https://www.instagram.com/dw_stories/ Für Videos in deutscher Sprache besuchen Sie: https://www.youtube.com/channel/deuts… #Coronavirus #StockMarket #Economy

The Stock Market Is In Free Fall On Coronavirus Fears. How Much Worse Will It Get?

Topline: The U.S. stock market has officially plunged into correction territory—at the fastest rate ever recorded, suffering its worst losses since the 2008 financial crisis this week amid ongoing panic over the spreading coronavirus and its impact on the global economy.

  • This week alone, the Dow Jones industrial average fell a total of 14%, the S&P 500 by 13% and the Nasdaq Composite by 12.3%.
  • The Dow plummeted nearly 1,200 points on Thursday—its biggest one-day drop ever, thanks to the coronavirus, which has now spread to at least 49 countries in a matter of weeks. Those losses continued on Friday, though the drop was somewhat less severe: The Dow fell 1.4%, while the S&P 500 sank 0.8%.
  • In a statement to reassure anxious investors, the Federal Reserve said on Friday that it was monitoring the “evolving risks to economic activity” posed by the coronavirus and further pledged to “act as appropriate” to keep the U.S. economy stable.
  • Some experts are skeptical any action from the central bank can stem market fallout from the coronavirus; Mohamed El-Erian, chief economic advisor for Allianz, told CNBC on Thursday that “markets will start freezing up even if the Fed cuts rates, which I think they will.”
  • National Economic Council director Larry Kudlow on Tuesday told CNBC that the virus is unlikely to become a full-fledged economic crisis, and described this week’s sell-off as a good buying opportunity. That same day, however, the CDC warned that the American public should brace for major disruptions from the coronavirus.
  • Among the stocks that have been hard hit this week are Apple (which is now flirting with bear market territory after falling 20% off its record highs) and American Airlines, which fell more than 25% this week.

Tangent: Hundreds of companies, from Apple and Nike to Starbucks and Microsoft, have issued warnings that the coronavirus will impact financial results for the first quarter and beyond. In a note on Wednesday, investment banking giant Goldman Sachs revised down its estimate for U.S. corporate earnings in 2020, forecasting 0% earnings growth for 2020 as a result of the outbreak.

Chief critic: “Markets are much too negative on the coronavirus. . . . The market was too expensive earlier in the year, but the coronavirus panic is overdone,” says Vital Knowledge founder Adam Crisfaulli. He points out that though the economic and corporate earnings fallout from the coronavirus will be severe, economic activity in China is normalizing, and that should help the bulk of the fallout remain confined to the first quarter.

Crucial quotes: “The global stock sell-off is showing no signs of slowing down,” says Edward Moya, senior market analyst at Oanda. He predicts the major indexes could “easily” enter bear market territory, though “expectations are still pretty high that the market will eventually snap back.”

“It has been a brutal week,” says Mark Freeman, chief investment officer at Socorro Asset Management. He expects a further sell-off next week, as investors wait to see how the situation evolves and how the Fed will respond, but says that “it is too early for the Covid-19 crisis to have a material impact on [U.S. economic] data.”

“This week reminded many investors of 2008, which isn’t a happy memory,” says Ryan Detrick, senior market strategist for LPL Financial. “Nonetheless, remember that the overall economic backdrop is still healthy in the U.S., but when fear grips, that doesn’t matter.”

“The impact to the economy will be severe, but not enough to create a recession (e.g., two consecutive quarters of negative growth),” says Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “It is the uncertainty that is most difficult to price in, so people are selling in the advance of concrete information.”

Crucial statistic: The benchmark U.S. ten-year Treasury yield hit a new bottom on Friday, falling below 1.12%.

Key background: Stock market losses accelerated after the CDC confirmed the first case of “community transmission” of the coronavirus in Sacramento, California. Globally, more than 83,700 people have been infected as of Friday, with more than 2,800 dead. Earlier this week, Italy, South Korea and Iran emerged as new coronavirus hot spots outside of China, causing further concern that the outbreak will spread to other major economies. The World Health Organization said on Friday that the virus now poses a “very high” risk at a global level.

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I am a New York—based reporter for Forbes covering breaking news, with a focus on financial topics. Previously, I wrote about investing for Money Magazine and was an intern at Forbes in 2015 and 2016. I graduated from the University of St Andrews in 2018, majoring in International Relations and Modern History. Follow me on Twitter @skleb1234 or email me at sklebnikov@forbes.com

Source: The Stock Market Is In Free Fall On Coronavirus Fears. How Much Worse Will It Get?

Investors are on the retreat world-wide as fears of the coronavirus deepen. Supply chains are starting to falter and tourists are staying home. The virus is also sparking the sell-off of pandemic bonds. As the business community struggles to predict the coronavirus’ economic fallout, observers warn the virus could be the final blow that throws the world economy into recession. The Dow Jones had its worst one day point drop in history, tumbling almost 4 and a half percent. That sentiment spilled over to Asia with Tokyo’s Nikkei shedding 3 point 6 percent today. And Hong Kong’s Hang Seng also closed down 2 point 4 percent. Subscribe: https://www.youtube.com/user/deutsche… For more news go to: http://www.dw.com/en/ Follow DW on social media: ►Facebook: https://www.facebook.com/deutschewell… ►Twitter: https://twitter.com/dwnews ►Instagram: https://www.instagram.com/dw_stories/ Für Videos in deutscher Sprache besuchen Sie: https://www.youtube.com/channel/deuts… #Coronavirus #dwNews

7 Reasons Mental Health Issues And Financial Issues Tend to Go Hand-in-Hand (And It Has Nothing to Do With the Cost of Treatment)

Of course, it comes as no surprise that most people who walk into my therapy office are experiencing psychological distress in one form or another. But, the vast majority of those individuals are also experiencing financial distress.

It’s no coincidence. Research shows financial issues and mental health problems often go hand-in-hand.

One study found that individuals with depression and anxiety were three times more likely to be in debt. Other studies have even found a link between debt and suicide.

A slight decline in mental health (long before you’d meet the criteria for a diagnosable mental illness) can be linked to increased financial stress. And increased stress can lead to poorer mental health.

Think of psychological well-being as a continuum. On one end of the spectrum is mental health. On the other end is mental illness.

You fall somewhere on the spectrum–and it’s likely to change slightly from day to day depending on a variety of factors, such as your physical health, sleep quality, nutrition, exercise level, stress, and overall mood.

If your mental health stays in a poor state for a length of time–or it just continues declining–you’re at increased risk for financial problems as well. Here’s how poorer mental health can take a toll on your financial situation:

1. Life Feels Out of Control

When you feel as though you’re losing control over your mood and your thoughts, you’ll likely begin to feel as though life is out of control too–especially your financial life.

You may even lose hope about a brighter future. And who wants to save for a big purchase or put money away for retirement when life feels as though it’s spinning out of control. You might feel like the one thing you can control is your ability to buy something right now.

2. You’re More Likely to Avoid Problems

It takes a lot of concentration and fortitude to tackle a tall stack of bills or to call the credit card company to address your late payment.

And of course, sitting down to create a budget creates high anxiety and it’s often painful to face the facts. It’s much more tempting to avoid those sorts of problems when you aren’t feeling your best.

3. You Get Desperate for Temporary Relief

When you’re in pain, you’ll do almost anything to get out of it–even if it’s going to hurt you more in the long-term. It’s one of the reasons the term “retail therapy” was invented.

Buying something right now, whether it’s a new pair of shoes or a car you can’t afford, will give you momentary pleasure. But, there’s a good chance it will create more financial distress in the long-term.

4. Self-Esteem Plummets

Quite often, the worse you feel, the worse you feel about yourself. And that can lead many people to try and overcompensate.

Low self-esteem can cause someone to buy expensive clothing, a name brand watch, or even a luxury car in an attempt to project an image of success.

5. Energy Levels Decrease

A decline in mental health often means poorer quality sleep, increased feelings of fatigue, and more trouble staying on task.

All of those things make it much more difficult to think about paying off debt–let alone take action. And it’s hard to create a plan for the bigger overall picture when you aren’t in the right state of mind.

6. Unhealed Wounds May Come Back to Haunt You

When you’re feeling down, your brain will recall all the other times when you felt similar feelings–and those just might be the lowest points in your life. Quite often, emotional wounds that never healed get re-opened as your mental health declines.

And for many people, that leads to changes in financial habits. A father who was teased for not having nice things as a kid may overspend on his children to prevent them from experiencing the same pain. Or, an individual who has never felt good enough might take out a bigger loan than she can afford in an attempt to get the attention she craves.

7. It’s Tough to Think Clearly

It can be hard to think about your grocery list, let alone your financial future when your mental health is on the decline. Making decisions, planning ahead, and organizing your financial situation may feel like an uphill battle that you’re unequipped to fight.

How to Improve Your Mental Health

Fortunately, there are steps you can take to improve your mental health–which can also improve your financial health.

Taking care of your body with adequate sleep, exercise and nutrition, socializing with supportive people, engaging in leisure activities (even when you don’t feel like it) and setting aside time to take care of your needs (like managing your budget) can help improve your psychological well-being.

If you’re struggling to build mental strength, get professional help. You might start by talking to your doctor to rule out physical health issues that might be behind your symptoms (like a thyroid problem). Then, you might try talking to a therapist who can help you identify concrete strategies for feeling better fast.

By: Amy Morin

Source: 7 Reasons Mental Health Issues And Financial Issues Tend to Go Hand-in-Hand (And It Has Nothing to Do With the Cost of Treatment)

People with financial issues are more likely to suffer from mental health problems. The opposite can be said as well – People with mental health problems are three times as likely to be in debt. Guy Shone from Explain The Market says, “One in four are likely to suffer from mental health problems this year. And this is largely associated with financial issues.” In this segment, Shone explains how we could break the vicious cycle of financial issues and mental health problems. Shone talks about ‘Money and Mental Health’, a private body that puts problems faced by individuals in front of industries and attempts to break the vicious cycle. Tip TV Finance is a daily finance show based in Belgravia, London. Tip TV Finance prides itself on being able to attract the very highest quality guests on the show to talk markets, economics, trading and investing, keeping our audience informed via insightful and actionable infotainment. The Tip TV Daily Finance Show covers all asset classes ranging from currencies (forex), equities, bonds, commodities, futures and options. Guests share their high conviction market opportunities, covering fundamental, technical, inter-market and quantitative analysis, with the aim of demystifying financial markets for viewers at home. See More At: http://www.tiptv.co.uk Twitter: @OfficialTipTV Facebook: https://www.facebook.com/officialtiptv

Is a Recession Coming – Brooke Crothers

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In December 2007, Larry Kudlow, then a talking head for the business network CNBC, proclaimed, “There’s no recession coming. It’s not going to happen.” That same month, the economy plunged into the worst economic downturn since the Great Depression. This week, Larry Kudlow, now the director of the National Economic Council, stood on the White House lawn and struck a familiar note: “I’m reading some of the weirdest stuff [about] how a recession is right around the corner. Nonsense,” he said. “Recession is so far in the distance, I can’t see it……….

 

 

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The Next Recession Is Coming: Here’s How To Protect Your Portfolio – John E. Girouard

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Everyone wants to know how to create the elusive “recession-proof” portfolio. In 2008, I was asked to write a column on the topic, and since millions of us were still reeling from losing everything, the title I suggested was, On Monday I was Ready to Retire, Now It’s Tuesday. Catchy, yes, but when people woke up to find $10.2 trillion in wealth had been wiped out from the American economy, they wanted answers. More importantly, they wanted to take back some semblance of control over their financial lives and find a way to protect themselves from “next time,” which had quickly become their new worst fear……………

Read more: https://www.forbes.com/sites/investor/2018/11/20/the-next-recession-is-coming-heres-how-to-protect-your-portfolio/#36fefa831682

 

 

 

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