Kristina Hooper

Stocks march upward during a tumultuous week in U.S. history

Weekly Market Compass: It was a week of surprise, horror and disappointment. Why didn’t stocks react?

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Weekly Market Compass: Market predictions and investment resolutions for 2021

Market predictions and investment resolutions for 2021

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What to watch as 2020 comes to an end

This is the last blog of the year for me. And what a year it has been — one full of loss. Loss of people, first and foremost, and also of businesses. It was just reported the other day that New York icon The 21 Club will be closing for good, the latest of many service-related businesses to sadly fall victim to the pandemic.  I think we are all eagerly waiting to close the books on 2020 and looking forward to brighter days in 2021. I want to thank the many health care workers and other frontline workers (including grocery store employees, emergency responders and teachers) who have risked their lives this year in the face of the pandemic. I think I speak for all of my Invesco colleagues in saying that I am in awe of you and all you have done this year.

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As COVID cases rise, the world looks toward a vaccine

While I have never lived in Florida, I have spent enough time there since childhood to be familiar with a weather phenomenon referred to as “the mean season.” It describes a brutal weather pattern that typically occurs in the late summer months. Hot, humid mornings are often followed by severe thunderstorms in the afternoon, which blow in from the ocean. However, the rain does not alleviate the heat — it actually exacerbates the heat in the evening, setting the stage for another hot, humid morning to follow. Hurricanes and tropical storms are sprinkled throughout the season, making it even more difficult. Throughout this oppressive weather pattern, there is typically no relief from the heat — and it can last for a month or more. Hence the term “the mean season.”

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Three potential paths for markets in 2021

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Markets gain increased certainty on key issues

The British philosopher Bertrand Russell once said, “What men want is not knowledge but certainty.” I have been thinking a lot about that quote in the last several weeks, and how especially in such uncertain times, certainty may be more helpful than knowledge in allowing us to move forward.

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Fears of unrest rise on the eve of U.S. Election Day

Well, last week was in fact a Pepto Bismol kind of week, just as I had expected. No fiscal stimulus in the U.S., COVID-19 cases on the rise in Europe and the U.S., and growing concerns about the U.S. presidential election. It’s no wonder that the VIX volatility index has risen dramatically in the last few weeks, from 25 on Oct. 9 to 38 on Oct. 30.¹ As I’ve said before, today’s election concerns aren’t your usual run-of-the-mill worries like we saw in past election cycles. Past questions focused on issues such as “What happens to stocks if corporate taxes go up?” This time around, it is “What happens if there is a contested election?” and “What happens if there is civil unrest?”  

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Stay prepared for a volatile autumn

Well, I feel some serious Pepto-Bismol days coming on, given the impending U.S. presidential election, the declining possibility of another U.S. fiscal stimulus package in 2020, and rising COVID-19 infection rates around the world.  

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Is a Brexit deal still possible?

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Five things to watch in October

This month, I’m watching five key issues that have the potential to impact global markets.

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The debate, the diagnosis, and jobs

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Five questions we’re hearing from investors

There is a feeling of apprehension in markets. I can sense it in the questions I receive. I continue to get more run-of-the-mill queries such as: “Are stocks still overvalued at current levels?” But then there are the new questions, which reflect deeper concerns. Most of the election-related questions I have received are like none I have gotten before in my career.

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What will arise from today’s ‘creative destruction’?

It’s back to school season, and that invariably reminds me of my own education and all that I enjoyed learning when I was in school. One class that I found particularly thought-provoking was a business school class on the history of entrepreneurship. Interestingly, the curriculum started with Joseph Schumpeter, the economist who introduced the concept of “creative destruction,” which Schumpeter developed based on the theories of Karl Marx. Not surprisingly, I have thought a lot about Schumpeter’s views throughout the pandemic.

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Three reasons why this isn’t another ‘tech bubble’

It feels like investors have been on a wild ride over the past week as tech stocks plunged, dragging down major global indexes with them. A few factors contributed to the fall: The first was Senator Mitch McConnell’s comments that a U.S. fiscal stimulus deal may not come to fruition in the next few weeks. Then, concerns rose about the potential for a contested election in the U.S. presidential race if no clear winner is declared on election night. Add to that concerns about frothy valuations in the tech space — the result was a very substantial sell-off for tech stocks with reverberations in global markets.

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What could the Fed’s new policy mean for investors?

Last week brought some major headlines with a new inflation target policy from the Federal Reserve, news of a leadership change in Japan, a decline in US consumer sentiment, and spikes in COVID-19 cases. What are the implications of these events for investors?

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Staying on guard against overconfidence

It’s August in New England for the Hooper family, which means hot summer days, barbecues, and lots of time in the water. Every year at this time, my thoughts turn to the iconic movie “Jaws,” which, as regular readers of this blog may remember, is another summer tradition for me. The book came out when I was still a toddler, and the movie soon after, so I must confess that I have never felt comfortable swimming in an ocean in my entire life. In fact, I recall reading the book as a child in the car as we drove from New York to Florida for a beach vacation — and declaring after a particularly frightening chapter that I was ready to turn around and go home.

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Optimism persists despite U.S. stimulus stalemate

Last week, I laid out five things to watch in the month of August. Over the past seven days, we’ve seen new developments in each one. This week, I offer a quick update to each of those five issues, and then highlight positive news for U.S. jobless claims and vaccine development.

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Five things to watch in August

We are officially in the “dog days of summer” (in the Northern Hemisphere, anyway). This nickname comes from the rising of Sirius (the “Dog Star”), but it has become synonymous with the uncomfortable heat of late summer. Technically, the “dog days” end on August 11, but most people apply the term to the entire month. This week, I look at five issues that I expect to impact markets throughout the sweltering “dog days” and beyond.

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The pressure is growing for the U.S. economy

Last Friday, my oldest child graduated from high school. Late July is not normally associated with graduations, but we are living in a time of COVID, and so what was supposed to occur two months earlier in the New York area was postponed and rescheduled. We were incredibly grateful to our son’s high school for putting on five separate graduation ceremonies in the course of a day to comply with New York State regulations that allow a maximum of 150 people to attend gatherings. Given the need to fit in five ceremonies in one day, the event felt like one part important milestone and one part fast food drive thru — which made it the first high school graduation I ever attended that was efficiently run and ended before you actually started wishing it could end. I was struck by the commencement speaker and his very honest words to the graduates. He told them that he couldn’t imagine having to miss out on the many important senior-year milestones that the class of 2020 missed because of the pandemic. He told them that this year has created a wound that will take years to heal.

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EU passes stimulus package while U.S. lawmakers continue to negotiate

When I was in high school, we read Henry James’ “The Europeans” in our English Literature class. A major theme in the novel is the contrast between Europeans and Americans, with Americans in the “New World” somewhat ironically portrayed as conservative, traditional and more focused on money, while Europeans are portrayed as less traditional, more progressive and more emotional. I have thought about that book a lot in the past week.

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