Weekly Wrap: What’s Next?

What’s Next?

Like many of you, that's what I’m asking myself. Russia has invaded Ukraine and, as I write this, there's no clear answer as to “what’s next.” More sanctions, to be sure. But beyond that, no one knows.

The Russia-Ukraine conflict has made an already jittery market even more nervous. Investors came into February concerned about inflation, supply chain challenges, and rising interest rates--so concerned, in fact, that they moved out of U.S. equity and bond funds in January. Fast forward to late February, and many continue to seek out safer assets.

As investors, we know the markets are never predictable. But what we’re experiencing these days sure feels like extreme uncertainty to many. That uncertainty leaves us feeling helpless. And while many investors can “keep calm and carry on,” others (including me) would prefer to feel a little more in control. We want to do something--no matter how small--to feel better about our finances during times of turmoil.

There are a few go-to pieces of advice that I return to during periods of market stress. They're my perspective-setters, and as you'll see, all are from my colleague Christine Benz. Some of these pieces were created during brief market hiccups or, more significantly, near the start of the pandemic and subsequent bear market of 2020. Other pieces are newer. In any case, the takeaways within them are timeless and actionable.

3 Ways to Take Control in a Volatile Stock Market Risk, Not Volatility, Is the Real Enemy A Checklist for Volatile Markets: Retirement Saver Edition A Checklist for Volatile Markets: Retiree Edition Your Market Downturn Tool Kit Webcast: Tune Up Your Portfolio in Uncertain Times

Those looking for Morningstar's take on market events will find plenty of insights and investment ideas from our markets team. And for stock investors seeking fresh ideas, many stocks from our Best Companies to Own: 2022 Edition list are now undervalued. No matter your investing temperament--or your place on the keep calm/control freak spectrum--the bottom line is to keep investing. It's timeless advice. For proof, I encourage you to watch the interview that Christine did with the late Jack Bogle in another challenging year for investors: 2008.

--Susan Dziubinski

Editor's Picks

4 Warren Buffett Stocks to Buy These undervalued stocks are among the holdings in Berkshire Hathaway today.

The Best Women-Run Companies to Own: 2022 Edition These firms have carved out lasting competitive advantages and are led by female CEOs.

Should You Hold Cash Instead of Bonds Today? The current market makes this decision even trickier.

Do Black Households Have More Wealth in the South? Comparing the financial outcomes of Black households.

5 Tips for Trading ETFs It is always a good time to brush up on best practices.

Russia Invasion Sparks Renewable Energy Stock Gains As oil prices jump, solar and clean-energy plays also advance.

Portfolio Planning and Personal Finance With Christine Benz

How to Get the Most Out of Your IRA Contributions Tips for selecting the right account type, using new contributions to adjust your portfolio's allocations.

Is Your Asset Allocation Appropriate? There's no one-size-fits-all solution.

Do You Have Enough Cash on Hand? Whether you're working or retired, here's how to think about your liquid reserves.

What Risks Lurk in Each Asset Class? A field guide to the key risks for investors in stocks, bonds, and, yes, cash.

Is Your Portfolio Protected Against Inflation? Inflation protection is more concerning for some investors than others.

Mutual Funds and Exchange-Traded Funds

ARK Invest Turns to an Innovative Fund Structure After putting active ETFs on the map, Cathie Wood's firm looks toward interval funds.

Were Last Year's Top Funds Lucky or Smart? These funds were mostly clobbered in the coronavirus sell-off but rebounded nicely in 2021.

Actively Managed Funds Continue to Underperform Less than half of active funds delivered for investors last year, new Morningstar research shows.

Stocks

Why Are Growth Stocks Still Struggling? Rising rates remain a headwind, but valuations are now looking more reasonable.

Tencent's Stock Is Severely Undervalued Morningstar's analyst says the market is overlooking the company's long-term revenue opportunities.

Is Your Stock Mix Out of Whack? It's important to review your portfolio's equity exposures and interest-rate sensitivity.

5 Charts on Market's Response to the Ukraine Invasion Despite potential inflationary pressures from the conflict, expectations for Fed tightening have been dialed back.

Why Are Wide-Moat Stocks Underperforming? High-quality stocks with competitive advantages should outperform during tough markets. They aren't this year.

The Long View Podcast

Lori Lucas: Despite Pandemic, Retirement Confidence Soars The president and CEO of EBRI talks about the connection between a strong stock market and retirement confidence, improving the 401(k) system, and why people tend to be poor judges of when they'll retire.

Rekenthaler Report

Infinity Q Diversified Alpha: Worst. Fund. Ever? The SEC files its latest complaint.

Do Investors Need Alternative Investments? How commodities and other nontraditional investments have affected portfolios.

Commentary

Don't Do Dumb Things With Your Money The personal finance expert and author of 'The Dumb Things Smart People Do With Their Money' shares her three-pronged approach to financial success.

This Fixed-Income Team Is Finding the Right Fit Their focus on valuation is something investors have grown to count on.

Bringing Sustainable Private Placements to Investors 'It's our way of helping to try to democratize access to the high-impact private investments population.'

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