The private equity backer of Aberdeen-headquartered Enermech and operator Neptune Energy posted an investment loss of nearly 1billion for the start of the year.

Carlyle Group cited the fallout from the Covid-19 pandemic for the 957m deficit in the first quarter, which compares to a 520m profit in the same period a year ago.

The US corporation has now wiped out all financial guidance given at the start of the year, stating the crisis reduces its ability to accurately forecast near term financial results.

Carlyle commands assets worth $217bn (173.2bn) under management via nearly 400 investment vehicles.

It bought energy services firm EnerMech in 2018 from Lime Rock Partners in 2018 in a 450m deal.

The firm also holds a 30% stake in Neptune Energy, which employs around 140 people in Aberdeen and operates the UKs largest gas field, Cygnus.

Carlyles real assets segment decreased in value by 14% to 31.7bn during the period, mainly driven by write-downs in the energy portfolio, it said.

Meanwhile, co-chief executives Kewsong Lee and Glenn Youngkin praised courageous frontline workers.

They added: Since the beginning, our priority has been the health and safety of our people. As a firm, we have adapted well to this new environment as we support our companies and prepare for a wide range of outcomes.

The momentum weve established and our strong first quarter give Carlyle a position of strength as we navigate the current environment.

We are taking a balanced and patient approach, and our global and diversified platform enables us to provide capital to companies as long-term investors as we drive value for all of our stakeholders.

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Private equity backer of EnerMech and Neptune Energy posts investment loss of nearly 1bn - News for the Oil and Gas Sector - Energy Voice

ETFs have found themselves at the epicenter of the crude oil collapse.

One exchange-traded fund in particular the United States Oil Fund has been under extensive pressure in the wake of last weeks collapseoil price futures.

The unprecedented move into negative territory forced the USO to restructure several times by dumping shorter-term futures contracts to avoid imploding on its many retail investors. It has also made the fund a target of short sellers betting against its survival.

All this has made some in the industry question whether more education or warning should be required from companies offering ETF products that trade futures contracts.

The key is transparency, said Jason Bloom, who oversees the Invesco Oil Fund (DBO), USOs top rival fund.

While both USO and DBO have fallen precipitously this year, DBO has held up relative to its peer, with a 51% loss versus USOs 83% decline.

USO and DBO are similar in that theyre both ETFs and they both hold WTI futures contracts, but thats about where it ends, Bloom said Monday onCNBCs ETF Edge.

DBO since its inception over 10 years ago has always used an optimization process in selecting which futures contract to own, said Bloom,Invescos director of global macro ETF strategy.Occasionally, they own the front part of the curve, which USO used to own exclusively until the several changes recently.

That optimization process involves a cost-effectiveness calculation on DBOs part. Before its futures contracts roll over, the fund determines which futures contract has the best cost of carry, Bloom said.

Related News: No, oil below $0 doesn't mean the gas station will pay you to fill up

In some cases, its actually positive income if the futures markets are backward-dated, which happens when the current price rises above the price of longer-dated futures, he said.

Right now, the opposite is happening with oil prices theyre in contango, which means longer-dated futures prices are higher than the spot price of crude.

Contango means that theres a negative cost, theres a cost burden on the investor, to hold that futures exposure over time, Bloom said. DBO seeks to minimize that cost in a contango market. We currently hold the March 2021 futures contract, which is pretty far out the curve, and it hasnt really been subject to some of these issues weve seen in the front of the curve.

Heres where the transparency comes in. DBO shareholders know that the ETF will hold that March 2021 contract until about three weeks before it expires, then make that optimization calculation and roll it over, Bloom said.

So, you have a great deal of transparency as to what your exposures going to be in DBO, and then you can do the math, he said. If you buy DBO today and that futures contract is $29 a barrel, you know that if youre above $29 a barrel minus management fees, you have a chance to profit from that. So, it just depends on your expectations and your time frame.

We think its the best balance between predictability, transparency and having some sort of dynamic optimization, Bloom said of DBO.

Tom Lydon, CEO of ETF Trends and ETF Database, agreed that investors need to be aware of what they own when they buy shares of commodity ETFs.

Related News: Report: Google Slows Hiring For Rest Of 2020 While Bracing For Downturn

I think a lot of investors were thinking that in buying USO, they may be able to profit from future oil prices when people start driving cars and flying in planes again, but what in fact they bought were people not filling up their tank and a bunch of tankers full of oil sitting off the coast, he said in the same ETF Edge interview. And it didnt translate to them. So, youve got to look under the hood.

Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA, echoed that point in the same interview.

These kinds of products that use futures are more dangerous for investors, Rosenbluth said. It makes it harder for them to understand what theyre actually owning.

Rosenbluth pointed out that although USO is slightly cheaper to own than DBO, with an expense ratio of 73 basis points versus DBOs 78, its underperformance has been notable. Over the past three years, USO has fallen 79% versus DBOs 39% decline.

So, you really need to understand whats inside the portfolio, how these are different and then determine if these are even appropriate for you and your clients, Rosenbluth said.

USO, the markets largest oil ETF by net assets, fell nearly 3% in Tuesdays session. DBO ended the day slightly lower.

Disclosure: Invesco is the sponsor of CNBCs ETF Edge.

Disclaimer

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Oil ETF overseer addresses the risks of investing in crude-based funds - News Info Park

Dont miss these top money and investing features:

These money and investing stories, popular with MarketWatch readers this past week, offer ways to manage your financial portfolio and to invest strategically during the coronavirus pandemic and afterwards.

The U.S. stock market is itself a forward-looking instrument. This is the one leading economic indicator stock investors should follow

Value Line survey sees 8% annualized returns between now and April 2024, writes Mark Hulbert. This respected market-timing model just flashed a bullish four-year outlook for stocks

Value strategy continues to lag in a market where earnings growth is scarce, writes Mark Hulbert. These beaten-down stocks should be big gainers, but investors arent in a bargain-hunting mood

Taking another look at Fixed Index Annuities How to turn the S&P 500 into a bond

Ohio Rep. Ryan: Emergency Money for the People Act covers what the CARES Act missed. One $1,200 stimulus check wont cut it. Give Americans $2,000 a month tax-free to fire up the economy

Insolvent pension plans could drag some cities into bankruptcy Coronavirus will make Americas cities feel the pressure of pension debt

Expand the purchase of Main Street loans; limit the purchase of government loans. The Fed should not be bailing out the underfunded pensions of cities and states

A new offering from Fidelity Investments inhabits a gray areas amid the market shift, and suggests that theres more life left in the mutual fund space than ETF-watchers might realize. A loyalty program for mutual funds? Fidelity tries something new

ETF industry veterans expect to see mutual funds convert their structure to what they consider a superior wrapper for asset management. Will mutual funds get a second wind... as ETFs?

Tal Cohen, head of North American markets at the Nasdaq, discusses the resiliency of major tech companies amid a volatile earnings season. Nasdaq says tech companies will soar this earnings season

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These money and investing tips offer a common sense response to the coronavirus crisis - MarketWatch

Efforts to blunt the impact of the coronavirus pandemic have led to some of the most abrupt negative economic changes in modern history. First-time unemployment claims hit record highs as businesses shuttered or were otherwise restricted to reduce gatherings of people. Oil traded at negative prices as demand dried up and suppliers started running short of places to store the stuff.

Overall, The Wall Street Journal estimates that more than a quarter of the U.S. economy has been taken offline by efforts to fight the spread of that illness. There's reason to believe the economic fallout will get worse the longer restrictions stay in place. With all that going on around us, investing may very well be the last thing on your mind. Indeed, the easy answer to the question of whether you should invest new money during the coronavirus pandemic is a resounding "No!"

Unless....

Image source: Getty Images.

If you have a solid financial foundation in place, now may very well be a great time to invest in companies that look likely to survive this crisis and emerge stronger on the other side of it. You need to have that foundation in place because if you lose your job in the next round of layoffs, you don''t want to rely on selling those stocks to help you cover your immediate costs. Being forced to sell because you need the money is a recipe for losing money in a down market.

A strong financial foundation has the following three key factors:

Image source: Getty Images.

As long as that foundation is in place, you can consider investing new money during the coronavirus pandemic. What you must remember, though, is that you should only invest money in stocks that you don't think you'll need for at least the next five years. You can use that long term focus in two key ways to help you invest smarter.

First, as the past couple of months remind us, the stock market can be incredibly volatile. A long-term focus will help you better stomach that volatility by helping you put distance between what's happening to your investments and what you need to cover your day to day life. It's incredibly hard to stay invested in rough times as it is, but if you're relying on that money to cover your rent, it's downright impossible.

Second, over the long haul, a company's strength and growth prospects matter far more to its stock's success than the market's day-to-day movements. A long term time frame helps you focus on those business fundamentals of the companies you're considering investing in. That can help you both make better buying decisions and see whether price declines during a market panic really represent an opportunity to buy more shares at a bargain price.

Image source: Getty Images.

If you have both a solid financial foundation in place and the long-term focus it takes to invest successfully, you may want to put your money to work in the stock market during thiscoronavirus pandemic. No matter how great the market's bargains may be, however, they'll only do you any good if you're able to hold on to those investments until better days return.

As the old saying goes, fortunes aren't made in bull markets -- that's just where they get revealed. That makes now a great time to get your solid financial foundation in place and develop the long term focus that you need. With those two factors in place, investing now may very well improve your chances of having your own fortune revealed in the next bull market.

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Should You Invest New Money During the Coronavirus Pandemic? - The Motley Fool

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Joe Willauer is the executive director of the Butte Local Development Corp.

On our primary-election ballot is an initiative to support the continuation of a program that has supported many of the businesses and events that many us care for in our community.

The Economic Development Mill is a 1-mill levy to support growth, activity, and development throughout our local economy and has delivered countless dollars of investment and jobs.

The mill was originally established in 1990 with the intent of supporting Economic Development Purposes For A Five Year Period and has been renewed ever since. Originally the fund directly supported organizations like ours, the Butte Local Development Corporation (BLDC), and has since transitioned into a grant fund to provide critical funding for festivals, businesses, job growth, and economic activity within Butte.

Through the utilization of the mill and the investments that have been made, there have been numerous positive ripple effects in many economic sectors including supporting the growth of small businesses, recruitment efforts to bring new businesses to town, support for our beloved festivals as well as the many sporting events that pack the civic center. These funds circulate throughout our community delivering additional impacts in many sectors.

Currently, the program is administered through a competitive grant process that businesses, organizations, and individuals can apply for if they believe that their plan will lead to economic growth and activity.

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Guest view: Invest in Butte by voting "yes on Economic Development Mill continuation - Montana Standard

It's been more than two months since the start of the bear market that ravaged good and bad stocks alike, yet in recent weeks, the bulls have been running again as investors begin to believe that things will eventually return to normal in the wake of the coronavirus pandemic.

Numerous overarching trends that began long before the pandemic have found the spotlight in the face of the stay-at-home orders, giving the industry leaders an edge and even accelerating these already emerging or dominant shifts in technology and consumer behavior. This gives investors an opportunity to tap into these changes and even profit from them.

Assuming you have an emergency fund to fall back on and $3,000 (or less) that you don't need for three to five years, here are three companies riding powerful trends that will help them flourish for years to come.

Use of digital payments is exploding. Image source: PayPal.

Even before the outbreak, PayPal (NASDAQ:PYPL) was the undisputed leader in digital payments, and as sheltering at home became the new normal, the company has experienced what CEO Dan Schulman called "a tremendous increase in the use of digital payments."

In the past few weeks alone, the number of new customers has exploded, and Schulman said users signing into Venmo or PayPal have jumped dramatically, "in some cases doubling." He cited increases across a wide range of shopping verticals, including groceries, electronics, homewares, and gardening. Schulman also said, "Gaming is exploding."

PayPal was already generating strong growth before the surge. Revenue grew 15% in 2019, while profits increased by 28%. The company added more than 37 million new accounts last year, bringing the total to 305 million, while payment transactions per active account climbed 10%. PayPal also processed more than 12 billion payment transactions worth $712 billion in total payment volume (TPV) in 2019, with more than $100 billion of that attributable to Venmo.

The shift toward digital payments is ongoing and has gotten a sizable boost from consumers on lockdown -- and PayPal stands to benefit the most from the trend.

Video games are seeing a surge during stay-at-home orders. Image source: Getty Images.

The increasing popularity of video games over the past decade is well documented, though, in recent years, investors feared free-to-play and battle-royale games would siphon off revenue from the major players (pun intended).

Activision Blizzard (NASDAQ:ATVI) is one of the leaders in the space and delivered better-than-expected results last year, even in the face of record comps in 2018.

Since the onset of the pandemic, however, video game sales around the world have seen a resurgence. Spending on digital titles climbed 11% year over year, reaching a record $10 billion in March -- the highest monthly total ever, according to Nielsen-owned SuperData. Premium console revenue rocketed even higher, up 64% between February and March, while premium PC revenue jumped 56%.

Activision Blizzard is well-positioned to benefit as consumers sheltering at home seek refuge in their favorite video games, with many of the company's fan-favorite titles represented in the top 10, including World of Warcraft, Call of Duty: Modern Warfare, and even free-to-play titles like Candy Crush. The company also released Call of Duty: Warzone -- the answer to its free-to-play and battle-royale rivals -- which attracted more than 50 million players within one month after its March 10 launch. This illustrates the wisdom behind the old cliche, "If you can't beat 'em, join 'em."

That's not all. CEO Bobby Kotick said, "Most of our games are seeing record levels of engagement ... [and] a lot of new players are coming for the first time."

Video games were already a popular pastime, and shelter-in-place orders are providing more fuel for the fire.

Videoconferencing has become a remote-work staple. Image source: Zoom Video Communications.

Videoconferencing was already experiencing increasing adoption before the need for remote work changed it from convenience to necessity. No company is better positioned to benefit from this shift than Zoom Video Communications (NASDAQ:ZM).

The transition to remote meetings was already well underway before the COVID-19 pandemic struck, as evidenced by Zoom's blockbuster results over the past year. Revenue grew 88% in 2019, and the company generated a profit for the first time, which is unusual for a newly minted company; Zoom only went public this time last year.

Customer metrics were even more impressive, as Zoom ended the year with 81,900 customers, up 61% year over year, while those spending more than $100,000 over the trailing-12-month period grew 86%. Once onboard, customers tend to spend more, as illustrated by the company's net dollar expansion rate, which topped 130% for the seventh consecutive quarter.

Schools and businesses around the world were forced to implement remote gatherings, resulting in a growth surge from 10 million to more than 200 million users in less than three months.

That's not to say there haven't been challenges as the number of users ballooned. Hackers gained unauthorized access to meetings -- a practice that's been labeled "Zoombombing" -- disrupting the proceedings with obscenities, racism, and pornography. Zoom responded by redirecting all its research and development efforts, placing a temporary moratorium on new features, and focusing on increased platform security. The company has since rolled out significant upgrades to address the platform's shortcomings.

Even in the face of these challenges, Zoom's astronomical growth has continued, with users soaring from 200 million in March to 300 million in April.

As a result of the pandemic, video meetings have likely become the rule rather than the exception, which bodes well for the future of Zoom.

Data by YCharts.

The megatrends identified in this missive -- digital payments, video games, and videoconferencing -- predated the onset of the coronavirus pandemic, and each has gotten a boost from the stay-at-home orders that have blanketed much of the world.

As a result of their industry-leading positions, each of these companies has fared better than the overall market since the decline that kicked off in mid-February, as illustrated by the stock price chart shown above.

The underlying shifts that powered these market-beating results for PayPal, Activision Blizzard, and Zoom will only continue, making these stocks buys right now.

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If You've Got $3,000 to Invest, Buy These 3 Top Stocks Right Now - Motley Fool

Within 36 months there will no longer be a discernable distinction between sustainable and traditional investing, predicts Mark Tulay

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In John Lennons last album in 1980 he released the song Beautiful Boy, which showcased his deep love for his son Sean. The songs lyrics included the prophetic quote Life is what happens when you are busy making other plans. As we struggle to bring into focus the long-term impacts of a post-COVID-19 world, Lennons quote is a poignant reminder of the uncertainties that lie ahead for sustainable and responsible investors.

We are now approaching an inflection point in the crisis, where savvy investors are fundamentally reassessing economic, environmental, social and governance factors to adjust to the new normal. Here, I share my perspective on how astute investors can equip themselves for a volatile future by determining whether the companies they hold are future-fit.

Current State of Play

According to Morningstars Jon Hale, funds that integrate environmental, social and/or governance factors registered record growth in Q1 2020, eclipsing the previous record in Q4 2019. Sustainable funds in the US set a record for flows in the first quarter, wrote Hale. ETFs, passive funds and iShares dominate as US ESG funds gather $10.5bn in the first quarter.

Whats more, evidence suggests that ESG-attuned funds were sticky and held their value relative to their benchmarks. This early signal bodes well for sustainable investors and could serve as a proof point for how investors can trust ESG funds in turbulent markets.

Many investors are now reimagining the future state of investing in the aftermath of the pandemic. Important considerations come into play in preparing for the future, such as: What does the US governments current response to the crisis portend for the economy over the next three years? How do we know if a company is resilient and positioned for growth over the long term? And, do we have the information we need now to evaluate companies long-term performance outlook?

Predictions for the future: Six emerging mega-trends in the US

Over the next 12 to 36 months, the following six mega-trends promise to reshape the business practices and investing:

1. Record deficits squeeze companies that rely on government funding

In 2021, political and financial market pressure for deficit reduction will mount as markets adjust to the economic realities resulting from the record stimulus. This will adversely impact companies that rely on government funding as budgets are slashed in an effort to stabilise the economy.

2. Inflation roars as a result of unprecedented global stimulus and quantitative easing

As of April 2020, the first wave of COVID-19 stimulus and quantitative easing surpassed $2trn, three times the amount of the 2008 financial crisis bailout and more than five times the amount of President Obamas 2009 stimulus. The likely result of the most extensive bailout in US history is that inflation rates will soar, perhaps eclipsing 10%, similar to what the US experienced in the early 1970s.

3. Commercial real estate bubble emerges as a result of record levels of small businesses closures

As of today, over 50% of all stores in the US are closed. Government support will help, but will not be enough or come fast enough to prevent a commercial real estate bubble in the US. Whats more, the growth of online shopping will continue to accelerate, exacerbating pressure on brick and mortar commerce.

4. Unemployment hovers around ten percent for a sustained period

In mid-April, unemployment claims in the US jumped to 26 million, which is more than the total number of jobs created over the last ten years. This translates into an unemployment rate of approximately 16%. The unemployment rate should level off at around 10% within twelve months, but we are in for a period of sustained high unemployment rates for the foreseeable future in the US.

5. Multiple capitals thinking begins to transform investment decision making

The recent $2trn stimulus includes a $500bn bailout for companies that were hardest hit by the pandemic. Many progressive thought leaders, such as American Prospects David Dayen, objected to the bailout on the grounds that these corporations wouldnt need it if they hadnt squandered their record-high profits on payouts to CEOs and shareholders. As a result, a new way of thinking is emerging that is transforming the way we value a companys relationship with nature, people, society and shareholders. This Capitals Thinking approach is being championed by the Capitals Coalition and aims to reshape how investors engage on corporate governance and value the relationship between commerce, people and nature.

6. Sustainable (ESG) investing becomes the new normal in the US

Within 36 months there will no longer be a discernable distinction between sustainable and traditional investing. As sustainable investing continues to scale and become infused in Main street and Wall Street, high-quality investment managers will utilise multiple capitals thinking and integrate financially material ESG considerations in engagement strategies and investment decision making. This will be the silver lining of the crisis.

Call to Action

Collectively, these mega-trends - each with a distinct but linked role in the emerging investment landscape - will:

Transform the way corporate sustainability information is utilised by developing new disclosure expectations for material sustainability information and value generating strategies based on existing standards;

Reposition corporate reporting to tell a more complete story of how an organisations strategy, governance, performance and products lead to the creation of value over the short, medium and long term, through a multiple capitals prism;

Improve the precision, materiality and disclosure of sector-based sustainability and ESG KPIs and accounting metrics;

Accelerate the integration of ESG factors into investment and credit rating decision making.

The time has passed for small commitments, hyperbole and delays in embracing sustainable investing. Now is the time for leadership, investment and action. Companies and investment managers that remain on the sidelines will sacrifice their opportunity to shape their own, and the planets, future.

Mark Tulay is Founder and CEO of Sustainability Risk Advisors

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The New Normal in Sustainable Investing in the aftermath of COVID-19 - Responsible-Investor.com

Canadian defined benefit pension plans saw their sharpest quarterly decline since 2008 due to the economic impact of the COVID-19 pandemic, as both the RBC Investor & Treasury Services All Plan Universe and the Northern Trust Canada Universe posted losses of 7.1% during the first quarter of the year.

Despite the steep drop, it was a modest decline in light of the unprecedented conditions, Katie Pries, CEO of Northern Trust Canada, said in a statement. In a volatile market riddled with fear, uncertainty, and unpredictability, Canadian pension plan sponsors navigated through uncharted territory, seeking a path to safety.

The MSCI World Index tumbled 13.3% during the quarter, with growth stocks considerably outperforming value stocks. All economic sectors saw negative returns, with the energy sector faring the worst, while information technology (IT) performed the best. Because the Canadian dollar weakened against the US dollar during the quarter, plans with unhedged exposure to non-Canadian equities were somewhat sheltered from local currency losses, according to RBC.

Canadian equities as represented by the S&P/TSX Composite Index plummeted 20.9% during the quarter, erasing the annual gains from all of last year and significantly underperforming the global market. While the effects of the pandemic were primarily to blame for this, the dispute over the natural gas pipeline and the Russia-Saudi Arabia oil price war were also contributing factors.

US equities fell 11.7% in Canadian dollars, as international developed markets as tracked by the MSCI EAFE Index ended the quarter down 15.2%, while the MSCI Emerging Markets index, which was hurt by both the pandemic and a strong US dollar, lost 16.1% during the quarter.

The FTSE Canada Universe Bond Index returned 1.6% during the first quarter, which provided the plans some safety from losses in the equity markets. After the Bank of Canada cut interest rates, the yield curve steepened, and short-term bonds outperformed long-term bonds. Federal bonds outperformed provincial and corporate bonds, and mid-term bonds outpaced both short- and long-term bonds.

In search of a safe haven from the falling markets, investors sold off riskier investments and turned toward government bonds as the FTSE Canada High Yield Index lost 9.0%, and the FTSE Canada Federal Bond index returned 5.1% during the quarter.

It has been an exceptionally difficult period for Canadian pension plans to navigate, as the markets have been experiencing an unprecedented amount of volatility across asset classes, David Linds, RBCs head of Canadian Asset Servicing, said in a statement.

However, the substantial monetary and fiscal policy response from governments across the globe gives us room for optimism. While its difficult to speculate on what may happen over the short term, we hope these measures will lead to some reawakening of our economic growth in the near future.

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For Strength in Unification, Canadian Leader Calls for Regional Pensions to Pool Investments

Canadian Pooled Funds Return 15.8% in 2019

Tags: Canada, Canadian, David Linds, Defined Benefit, Katie Pries, Northern Trust, pension, RBC Investor & Treasury Services

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Canadian Defined Benefit Plans Have Worst Quarter in 12 Years - Chief Investment Officer

Caroline Purser | Photographer's Choice | Getty Images

The economic shock of the coronavirus pandemic has caused unprecedented strife.

More than 22 million Americans have lost their jobs, the markets are roiling, and Americans, stressed about all this uncertainty, are left with many unanswered questions.

Two of CNBC's Financial Advisor Council members Lazetta Rainey Braxton, co-CEO of 2050 Wealth Partners, and Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners along with Josh Brown,CEO of Ritholtz Wealth Management, listened to viewers and answered their questions on CNBC's "Markets in Turmoil" Monday night.

Here is how these experts responded to viewers' most pressing concerns.

How do investors determine asset allocation and the level of risk that's for them?

According to McClanahan, there are two factors that should drive portfolio allocation. The first is, how long do you have before you need to use your money? If you need your money in the near term, meaning that you are approaching retirement age or you recently retired, McClanahan says investors should be consecutive and dial back their risk.

Younger investors who can stomach swings in the market should be more aggressive with their allocations.

Braxton says that now is a good time to figure out your risk tolerance. Investors have had a wide range of reactions to this market. Some might be indifferent to the roller coaster right now, while others are fearful they won't be able to get through their retirement years. Braxton said to use your reactions as a way to gauge your tolerance and then couple that with your timeline and goals.

While there is software available to help ease investors' fears, the No. 1 test an investor needs to pass to understand their risk tolerance is the sleep test, according to Braxton. Can you sleep at night? If not, you may need to adjust your investment allocation.

But risk tolerance is not static; it, too, changes with your age and goals. McClanahan suggests that investors always keep track of how much they could lose, especially when markets are rallying. Being conscious of how much you could lose, especially during the rally, will have you prepared for when the market dives.

How should I manage my investments in my 401(k)?

McClanahan's first piece of advice for investors invested in a 401(k) is to make sure the fees are low. If not, talk to your employer about lowering them.

Next, make sure that you are diversified. McClanahan acknowledges that this can be difficult for investors that do not have a lot of money invested in their 401(k)s and are probably on a life-cycle fund. As you invest more money into your 401(k), you will need to determine the asset allocation that is right for you.

More from Invest in You: Here's a tax break you may not get during the coronavirus pandemic If you left or lost your job, here is what you can do with your 401(k) Received your $1,200 stimulus check? How to avoid spending it like a lottery win

How do I determine the amount of allocation I should have in cash?

There are a lot of advantages to being a professional investor, but according to Brown, there are advantages to being an individual investor. Unlike the pros, individuals don't have to answer to quarterly earnings reports. "As an individual investor, I only answer to myself, as that is decades away."

For young investors, volatility is the source of future returns. Cash should be saved in savings accounts where it will be the most liquid. Young investors should take on as much risk as they can tolerate. However, older investors may want to sit on more cash, as they will likely need to start withdrawing soon. "Risk is all about how much you can afford to lose, and young people have a long period of time. They can take more risk, and ideally, in the long run, it is going to make a lot of money for them."

McClanahan reminded investors that when they invest in stocks, they are investing in companies. Every year, some companies fail, she says, but most are successful, and unlike the 2008 crash, this market crash was started by a global pandemic. Just because a company's stock price plummeted doesn't mean the company was in bad shape, she says.

Risk is all about how much you can afford to lose, and young people have a long period of time. They can take more risk, and ideally, in the long run, it is going to make a lot of money for them.

Carolyn McClanhan

founder of Life Planning Partners

What do I do if I need to take a loan or withdraw from my 401(k)?

According to Braxton, the first thing everyone needs to do before taking out a loan is to determine exactly how much money they need to live. You don't want to take out more than you need, because not only are you the borrower in this case but you are also the lender. The next thing you'll have to do is check with your employer to see how much you can take out and what the interest rate on repayments will be.

The recently passed CARES Actnow allows you to borrow up to $100,000(previous loan limit was $50,000) from your 401(k) and delay repayment for up to one year. After you borrow, you'll typically have to repay the loan within five years, depending on the terms of your 401(k) plan. Under the CARES Act, loan payments due in 2020 can be delayed for up to one year from the time you take out the loan.However, if you can't pay back the loan within the time frame designated by your plan, your outstanding balance will be taxed like a withdrawal, and you'll also have pay a 10% early withdrawal penalty.

What are you telling investors in order to reassure them at this time?

A lot of investors are nervous about what the future will hold. Braxton reassures her clients by showing them a slide of market performance over the last century. Over the last century, there have been crashes, but each time, the economy rebounds and the stock market expands. "If you made it through 2008, you can make it through this," she says.

Through all the volatility, though, McClanahan still sees a silver lining: The coronavirus pandemic has exposed a lot of weaknesses in our markets, she says, adding that post coronavirus recovery offers us the opportunity to build stronger and more equitable systems.

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Financial pros offer smart investment tips during the coronavirus crisis - CNBC

Hope in the details!

US durable goods orders plunged 14.4% in March, but the details are much better. Transportation orders took a huge hit (-41% month on month), which is once again attributable to Boeings woes (civilian aircraft orders fell 295.7% MoM!!!). There were just 13 Boeing aircraft orders in March, but they also experienced 295 order cancellations, which are subtracted in the durable goods report the Census Bureau uses net orders in its calculations.

Excluding this component orders fell only 0.2% a fantastic outcome given what has happened to manufacturing surveys. Electrical equipment was up 1.5% and capital goods rose 1.3%.

The Fed is known to follow the non-defence capital goods order ex aircraft component closely given this is typically a good lead indicator for investment in equipment and capex in general. It actually rose! Only 0.1% admittedly, but this is much, much better than the -6.7% consensus expectations and offers hope that our -6% annualised GDP estimate for next weeks 1Q GDP report may be a touch too pessimistic.

Read more from the original source:
US investment - finally some good news - ING Think