Fighting Fear and Uncertainty in Markets

Kevin Gordon, senior investment strategist with the Schwab Center for Financial Research, joins host Mike Townsend to discuss how investors can navigate the uncertainties brought on by a flurry of developments in Washington that are impacting the markets, including the debt ceiling standoff, the Fed’s latest rate hike, and regulators scrambling to respond to another bank failure. Kevin provides some lessons investors can take from the 2011 debt ceiling drama and discusses the implications for the markets and the economy if the U.S. should default. He also offers his perspective on the latest Fed action, what the banking turmoil could mean for the broader markets, and the likelihood of a recession and explains why investors who wait for a recession to be announced could miss out on significant investing opportunities.

Mike provides updates on the House-passed debt ceiling bill and how Treasury Secretary Janet Yellen’s surprise announcement that the U.S. could default as soon as June 1 is changing the debate in Washington. And he offers three takeaways from a series of reports from the regulatory agencies about the recent bank failures.

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.

If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. 

Important Disclosures

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

Investing involves risk, including loss of principal. 

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.

Small cap funds are subject to greater volatility than those in other asset categories.

Currencies are speculative, very volatile and are not suitable for all investors.

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

0523-3MSM