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What Did the Fed Do in 2019?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

For the Federal Reserve, 2019 ended much like it started, with the federal funds rate on pause. But a lot happened in between: the Federal Open Market Committee (FOMC) cut rates at three meetings and markets shook off recession worries, while rocky trade negotiations and an unsettled global economy threatened the economic health of the U.S. Luckily for you, we documented the Fed rollercoaster ride throughout 2019. Below we’ve compiled all of our 2019 Fed meeting recaps in one place.

What did the Federal Reserve do in 2019?

The Fed began the year worrying about an impending recession, although one that FOMC members took pains to assure us was not on the immediate horizon. Turns out they were right: the U.S. economy did not slow down, as many thought it would in the wake of the Fed’s December 2018 rate hike.

The FOMC then spent the next six months with the federal funds rate on ice, at a range of 2.25% to 2.50%, asserting repeatedly this was the appropriate course of action to keep the economy running smoothly. Throughout those six months, the Fed’s Summary of Economic Projections (SEP) posted lower and lower expectations for the future federal funds rate.

The rate caught up with SEP projections at the July meeting, when the FOMC delivered its first rate cut in a decade — 25 basis points, dropping to 2.00% to 2.25%. The historic rate reduction was the first since the depths of the Great Recession.

Fed Chair Powell insisted the cut would not be the first of many, although economic reality caught up with his prediction. In September 2019, the FOMC cut the federal funds rate by another 25 bps to 1.75% to 2.00%, followed shortly thereafter by an October 25-bps cut to 1.50% to 1.75%.

Chair Powell repeatedly assured markets that the cuts were not a cause for panic. Rather, he called each a protective measure against downside risks to the economy’s health. External risks included turbulent trade negotiations and weaker global growth, both which heightened the risk of weaker U.S. manufacturing performance.

But by the end of 2019, Powell was saying those risks were diminishing, no longer necessitating further rate cuts.

What happened at the January 2019 Fed Meeting?

In its first meeting of 2019, the FOMC announced it would keep the federal funds rate at 2.25% to 2.50%. This decision followed much speculation surrounding the economy after the Fed rate hike in December 2018, the fourth rate hike of that year. In its press release, the FOMC cited the near-ideal inflation rate of 2%, strong job growth and low unemployment as reasons for leaving the rate unchanged.

In the post-meeting press conference, Federal Reserve Chairman Jerome Powell confirmed that the committee felt that its current policy was appropriate and would adopt a “wait-and-see approach” in regards to future policy changes.

As for what this decision might have signaled for the future, Powell stressed that the Committee would remain patient while continuing to look at financial developments both abroad and at home. These factors would help determine when a rate adjustment would be appropriate, if at all. When asked whether a rate change would mean an increase or a decrease, he emphasized again the use of this data for clarification on any changes. Still, the Fed did predict in December 2018 that the federal funds rate could reach 2.9% by the end of this year, indicating a positive change rather than a negative one.

What happened at the March 2019 Fed Meeting?

The Fed pivoted pretty rapidly from its hawkish stance in 2018 to a more dovish outlook as it kept policy on ice at the March 2019. This change in tone grew directly from the FOMC’s observation of slowing growth in economic activity, namely household spending and business investment. The Fed also noted that employment gains had plateaued along with the unemployment rate, which nevertheless remained at very low levels.

The Fed’s March SEP posted a projected 2.4% rate for 2019, which fell below the upper end of the 2.5% rate corridor of that time. This meant the doves may have wanted to see a possible rate cut if improvements in the economic outlook don’t materialize by mid-year.

When asked about this potential rate cut, Fed Chair Jerome Powell emphasized the Committee’s positive outlook, paired with its mindfulness of potential risks. Still, he maintained that “the data are not currently sending a signal that we need to move in one direction or another.” He also remarked that since it was still early in the year, they had limited and mixed data to consult.

What happened at the April 2019 Fed Meeting?

The Fed left rates unchanged at 2.25% to 2.50% at the April 2019 meeting. The economic data indicated some recovery in jobs and retail sales growth, while the unemployment rate remained low, as well. Plus, GDP grew 3.2% in the first quarter, exceeding expert economists’ predictions of 2.5%. This data supported the Fed’s outlook for a growing economy and its decision to keep interest rates unchanged.

Inflation was the big question for Fed Chair Jerome Powell at his post-meeting press conference. Inflation for personal consumption expenditures (PCE) — the Fed’s preferred measure of price changes — had dropped for the prior three months, with the first quarter coming in at 0.7%, below the committee’s 2% target. Powell noted that inflation “unexpectedly fell,” standing at 1.6% for the previous 12 months ending in March.

When asked about what signs the FOMC might see as a need to take action, Powell first answered that “we are strongly committed to our 2% inflation objective, and to achieving it on a sustained and symmetric basis,” a point he reiterated throughout the conference. “The Committee would be concerned if inflation were running persistently above or below 2%,” he continued, also noting that what they are currently seeing does not indicate a persistent problem.

What happened at the June 2019 Fed Meeting?

At the June 2019 meeting, the Fed kept the federal funds rate steady at 2.25% to 2.50%. Notably, the Fed changed its tone by dropping its “patient stance” language, saying instead that it would “closely monitor the implications” given the “uncertainties about this outlook,” namely trade developments and global growth concerns.

In simpler terms, the FOMC felt the data didn’t support a case for cutting rates immediately. However, the committee indicated it did expect the economic climate to change in the next few months — possibly for the worse.

The dovish St. Louis Fed President James Bullard was the only dissenter to the policy decision, voting to lower the federal funds rate range by 25 basis points, while all others voted to maintain rates where they are.

The SEP was stronger than expected, and the Fed’s economic projections were little changed from its March outlook, again contradicting expert predictions of a softer outlook. Change in real GDP and the federal funds rate projections for 2019 matched the numbers in March, while the unemployment rate projection dropped by a single basis point for 2019.

In its statement, the FOMC pointed to strong labor market reports, low unemployment, higher household spending and overall moderate economic growth as support for a continued favorable baseline outlook.

Still, that tricky problem with inflation remained. At the prior month’s meeting, inflation was a hot topic, as the Fed was concerned about inflation continuing to fall short of its goal of 2%. This time around, the Fed again acknowledged that overall inflation and inflation for items other than food and energy were running below 2%.

Chair Powell shared that the Committee pointed to uncertainties in global growth and trade negotiations as factors for muted inflation. Plus, the SEP gave us some additional insight, showing us that the Fed expects inflation to continue to run below target.

What happened at the July 2019 Fed Meeting?

The Fed cut the federal funds rate by 25 basis points at the July 2019 meeting. After a six-month monetary policy pause, the FOMC lowered the federal funds rate by 25 basis points to a range of 2.00% to 2.25%, a choice it called “appropriate to sustain the expansion” of the economy.

The FOMC statement cited “implications of global developments” (such as trade conflict and Brexit) and “muted inflation pressures” as its chief reasons for the rate cut, also calling out softer growth in U.S. business fixed investment. On the other hand, the committee acknowledged the still-favorable parts of the U.S. economy, including the strong labor market, low unemployment and increased household spending.

At the press conference, Fed Chair Jerome Powell underscored the good bits, stressing that there was “nothing in the U.S. economy that present[ed] a prominent, near-term threat,” while very pointedly calling out global risks, warning that the implications of these risks weighed heavily on the FOMC’s thinking.

As to whether those points signalled more rate cuts, Powell was adamant that they did not. In reference to previous instances where mid-cycle rate cuts had evolved into rate cutting cycles, Powell said that “the Committee is not seeing that,” adding “that’s not our perspective … or outlook.”

Boston Federal Reserve President Eric Rosengren spoke on July 19 about his preference to wait to make any rate changes, “given that the economy is quite strong” and with inflation holding around 2%. In fact, Rosengren and Kansas City Fed President Esther L. George were the two dissenters at the July meeting. Both indicated their preference to keep rates unchanged.

What happened at the September 2019 Fed Meeting?

The Fed cut the federal funds rate at its September 2019 meeting . Fed funds took another 25 basis point tumble to 1.75% to 2.00%, and the committee once again cited “implications of global developments” and “muted inflation pressures” as the causes.

If you recall, this reduction seemed to contradict Fed Chair Jerome Powell’s remarks back in July, when he was emphatic that July’s cut was not the opening shot in a campaign of many reductions. Rather, he referred to it more as a “mid-cycle adjustment” and a protective response due to a few “downside risks.”

As with the July meeting, there were dissenters on the committee. Kansas City Fed President Esther George and Boston Fed President Eric Rosengren, who had both voted against the July rate change, preferred to maintain the 2.00% to 2.25% range. St. Louis Fed President James Bullard also voted against the decision, although he wanted a bigger, 50 basis point cut.

The SEP indicated a continued positive outlook for the U.S. economy. The Fed acknowledged that the U.S. economy itself is still doing just fine; as Powell stated at the press conference, “we continue to see sustained expansion.”

More specifically, the FOMC’s statement pointed to the continued strength of the labor market, moderate growth in economic activity, solid job gains, a low unemployment rate and strong household spending growth. The only downside seemed to be weakened business fixed investment and exports — both of which were explained by the ongoing trade conflict.

The September Fed dot plot — which anonymously indicates each member’s federal funds rate prediction — showed a much lower and more cohesive outlook for 2019 when compared to June’s. The majority were indicating a federal funds rate below 2% for 2019 and 2020.

As for continued worries about the inverted treasury yield curve, Powell admitted that while the Fed certainly monitors the yield curve carefully, “there’s no one thing” that you could point to that undoubtedly means recession. Rather, Powell suggested, the inverted curve may be a result of the very risks the rate cut is intended to protect against.

“We don’t see a recession, we’re not forecasting a recession,” Powell said. “But we are adjusting monetary policy in a more accommodative direction to try to support what is, in fact, a favorable outlook.”

What happened at the October 2019 Fed Meeting?

The FOMC cut the federal funds rate for a third consecutive time at its October 2019 meeting. After cutting interest rates in July and September, the committee lowered the federal funds rate range by 25 basis points to 1.50% to 1.75%. As with the previous two reductions, the FOMC said it was meant to provide “significant support” to the U.S. economy against downside risks. These included muted inflation pressures, the ongoing trade battle with China, slower global growth and weaker U.S. manufacturing due to global uncertainties.

Fed Chair Jerome Powell was quick to note at the post-meeting press conference that “policy was not on a preset course.” He said the economy’s current growth rate and continuing resilience would not indicate another necessary rate cut. Of course, he also stressed that any changes to this state of affairs could prompt the Fed to ”materially reassess” its outlook, although he never shares what he thinks those changes might look like.

For what it’s worth, the FOMC again did not deliver a unanimous decision to cut rates. Kansas City Fed President Esther George and Boston Fed President Eric Rosengren voted to maintain the target range at 1.75% to 2.00%.

The downside risks to the U.S. economy remained, but the economy continued to perform well on its own. The Fed’s October meeting statement began by outlining the state of the economy. On the upside, the statement indicated that the labor market remains strong, the economy is growing at a moderate rate, job gains are solid, unemployment is low and household spending growth is strong. The weaker data points included low inflation, weaker business fixed investments and exports and slower manufacturing.

What happened at the December 2019 Fed Meeting?

The Fed left the federal funds rate untouched at 1.50% to 1.75% at its meeting in December 2019. Notably, all voting members agreed with this direction, lending a definitive stance to the decision.

Economic developments at home and abroad did not give the Fed any reasons for a “material reassessment” of its outlook — recall the comments that Fed Chair Jerome Powell made at the October meeting, when he said the Committee would only change the direction of monetary policy if they could see any real reasons to do so in the economic outlook.

Overall, the Fed’s outlook for the U.S. economy remained positive, with a strong labor market, solid job gains, low unemployment rate and solid consumer confidence. Despite continuing softness in exports and manufacturing and business fixed investment, the economy continued to grow at a moderate rate.

There were no surprises in the SEP, and few revisions to the projections released in September. The SEP forecasts for real GDP and personal consumption expenditure (PCE) inflation remained unchanged for the next three years. The Core PCE inflation projection was revised lower only slightly for 2019. Unemployment rate expectations are also down through the longer run, which aligns with the continued strength of the labor market.

On the December Fed dot plot, all members indicated a midpoint dot just above 1.5% for 2019. Most members chose to keep their dot there for 2020, with only four indicating a midpoint range just below 2%. Things start to look up in 2021, when eight members foresee a federal funds rate between 2% and 2.5%, while the other nine kept their dots below 2%. The outlook only continues to climb after that.

What will the Fed do in 2020?

Looking for the Fed’s latest decisions? Follow our Fed pre-meeting predictions and post-meeting reports here.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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10 Great Free Checking Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

The humble checking account may not offer rewards, cash back or many of the other perks offered by ritzy credit cards, but it remains the cornerstone of your financial life. Nobody likes paying monthly maintenance fees, so why not pick a free checking account that does away with them altogether?

Below, we’ve selected nine of the best free checking accounts by scouring our database for products meeting the following criteria:

  • No monthly maintenance fee
  • A low initial deposit amount (between $0-$50) needed to open the account
  • No minimum balance requirement
  • Minimal third-party ATM fees
  • Available nationwide

10 bests free checking accounts of March 2020

Account Name

Minimum needed to open


Consumers Credit Union (IL) Free Rewards Checking$05.09% (applies to balances up to $10,000)
TAB Bank Free Kasasa Cash Checking$04.00% (applies to balances up to $50,000)
T-Mobile Money$04.00%(applies to balances up to $3,000)
One American Bank Kasasa Cash Account$503.50%(applies to balances up to $10,000)
Evansville Teachers FCU Vertical Checking$30 ($25 if you're already a member of this credit union)3.30% (applies to balances up to $20,000)
Lake Michigan Credit Union Max Checking$03.00%(applies to balances up to $15,000)
Andigo Credit Union High-Yield Checking$03.00% (applies to balances up to $10,000)
Simple Account$00% to 1.55% on balances in Protected Goals
Axos Bank$501.25% (applies to balances up to $150,000)
SoFi Money$01.10%

Consumers Credit Union (IL) Free Rewards Checking

The Consumers Credit Union provides an online-only Free Rewards Checking account to anyone in the nation who becomes a member. You can qualify for membership with a one-time $5 payment to Consumers Cooperative Association. Perks of the account, which charges no monthly maintenance fees and requires no minimum balance, include unlimited third-party ATM fee refunds.

However you do have to meet some requirements in order to get all of the benefits of the account (including the high APY). The APY for this account is divided into three tiers, with the lowest earning 3.09%, the middle 4.09% and the highest tier 5.09%. The requirements for each of these tiers are:

To earn 3.09%

  • Receive eStatements
  • Make at least 12 debit card purchases a month
  • Post direct deposits or ACH payments of at least $500 each month

To earn 4.09%

  • Meet all the requirements of the previous tier
  • Have a Consumers Credit Union Visa credit card and spend at least $500 a month on it

To earn 5.09%

  • Meet all the requirements of the previous tier
  • Spend at least $1,000 a month on your Consumers Credit Union Visa credit card

Keep in mind these high APYs only apply to balances up to $10,000. The portion of any balance between $10,000.01 and $25,000 earn 0.20% APY, and balances greater than $25,000 earn an APY of 0.10%.


on Consumers Credit Union (IL)’s secure website

NCUA Insured

TAB Bank Free Kasasa Cash Checking

Headquartered in Ogden, Utah, TAB Bank offers a great rate on its Free Kasasa Cash Checking account. Developed by the Kasasa Corporation, a Texas-based financial services and marketing organization, Kasasa accounts help smaller banks compete against larger rivals by providing higher rates.

TAB’s account charges no fees for using third-party ATMs, and reimburses up to $15 in third-party ATM fees per month. There are no fees and no minimum balance requirement for this account, but to earn 4.00% APY reward rate, every month you must:

  • Deposit at least one ACH payment or direct deposit, or make one bill pay transaction
  • Make at least 15 signature-based debit card purchases of at least $5 each

If you don’t qualify in any given month, your balance earns 0.05% APY, and third-party ATM fees are not refunded. You can earn the reward rate APY on balances up to $50,000, which is well above the other maximum balances on this roundup. Balances greater than $50,000 earn an APY of 0.25%.


on TAB Bank’s secure website

Member FDIC

T-Mobile Money

Wireless carrier T-Mobile is venturing out into new territory with a financial product – a competitive one, too. T-Mobile Money is a new checking account that pays a 4.00% APY on balances up to $3,000. Balances over $3,000 earn an APY of 1.00%. There are no monthly fees, overdraft fees, transfer fees, ATM fees or minimum balance requirements.

In order to receive the 4.00% APY, though, T-Mobile Money does require the following:

  • Enroll in a qualifying T-Mobile wireless plan
  • Register for Perks with your T-Mobile ID
  • Make at least $200 in qualifying deposits to your checking account in the calendar month

Balances that do not meet these requirements, or balances over $3,000, will earn 1.00% APY.


on T-Mobile Money’s secure website

Member FDIC

One American Bank Kasasa Cash Account

This small community bank, based in Sioux Falls, SD, offers a nationally available Kasasa Cash checking account that earns a decent 3.50% APY on balances up to $10,000. You need a minimum of $50 to open the account, but after that all you need to do to earn the very competitive APY of 3.50% is:

  • Make at least 12 debit card purchase transactions a month of at least $5.00 each
  • Receive electronic bank statements, account notices and disclosures
  • Log in to online banking at least one time a month

If you meet these qualifications, One American Bank also refunds up $25 in third-party ATM funds per month.


on One American Bank’s secure website

Member FDIC

Evansville Teachers Federal Credit Union Vertical Checking

Don’t let the name of this credit union fool you—anyone can become a member if they open a $5 savings account, which then allows you to open a Vertical Checking account.

This free checking account doesn’t charge a monthly service fee or require you to maintain a minimum balance, and in return gives you an APY of as high as 3.30% on balances up to $20,000, provided you fulfill the below requirements:

  • Make at least 15 debit purchases each month
  • Make at least one direct deposit into the account each month
  • Login to your mobile or online banking at least once each month
  • Opt in to receive eStatements
  • In addition to the high APY, meeting these requirements entitles you to $15 a month for reimbursing third-party ATM fees.

In addition to the high APY, meeting these requirements entitles you to $15 a month for reimbursing third-party ATM fees.


on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

Lake Michigan Credit Union Max Checking

Despite its name, the Lake Michigan Credit Union is open to anyone who makes a $5 donation to the ALS Foundation. That small donation can pay off tenfold with the credit union’s Max Checking account, which features a 3.00% APY on balances up to $15,000. The account also has no minimum balance requirements and no monthly fees.

In order to receive the 3.00% APY, you must:

  • Direct deposit into any LMCU account
  • Make a minimum of 10 debit or credit card transactions per month
  • Make 4 logins to home banking per month
  • Sign up for e-statements

The Lake Michigan Credit Union’s Max Checking account also offers up to $10 in monthly reimbursements for non-LMCU ATM fees.


on Lake Michigan Credit Union’s secure website

NCUA Insured

Andigo Credit Union High Yield Checking

Another credit union with a competitive checking account is the Andigo Credit Union High Yield Checking account. With a handful of physical branches in Illinois and mobile banking services, Andigo Credit Union is open to anyone who makes a $15 donation to ConnectVETS.

Andigo’s High Yield Checking account features a 3.00% APY on balances up to $10,000, has no monthly fees, no minimum balance requirements and $12 a month in ATM surcharge rebates. However, to take advantage of the 3.00% APY, you must:

  • Have $500 or more in total direct deposit
  • Make 15 or more debit card purchases per month

Accounts that do not meet those qualifications earn a 0.06% APY. Balances above $10,000 earn 0.10% APY.


on Andigo’s secure website

NCUA Insured

Simple Account

Another online-only account, Simple is owned and backed by regional bank BBVA Compass and offers customers a checking account that’s intertwined with the app’s Protected Goals savings account, and additional budgeting tools. Simple doesn’t charge any fees, meaning users enjoy:

  • No monthly maintenance fee
  • No minimum balance needed
  • No account closing fee
  • No stop payment fees
  • No debit card replacement fee
  • No ATM fee if using Simple’s network, but users can be charged a fee by other banks if using a non-network ATM

One fee you do have to pay is a foreign transaction fee when using your Simple card internationally, which can be up to 1% of the transaction.

As a cash management product, the Simple Account automatically comes with a savings account feature. While the checking balance in a Simple Account earns a token 0.01% APY, Simple’s Protected Goals savings balances earn an APY of 1.55%.


on Simple’s secure website

Axos Rewards Checking

With a generous APY and no fees, online bank Axos offers a checking account that stands apart from the pack. Axos’ Rewards Checking account boasts an APY ranging from 0.4166% to 1.25%, depending on your balance and how many monthly transactions you make with your debit card. The account has no maintenance fees and no monthly minimum balance requirements, however there is a required $50 to open an account.

Axos says it does not charge overdraft or NSF fees for customers of its Rewards Checking account. The bank also offers overdraft protection, and will transfer available funds from a linked account, up to a maximum of six times per month.

The Axos Rewards Checking account’s other standout features include:

  • Unlimited domestic ATM fee reimbursement
  • No overdraft or NSF fees plus overdraft protection


on Axos Bank’s secure website

Member FDIC

SoFi Money

SoFi may be better known for its personal loan products, but its SoFi Money cash management account offers a great free checking experience. This account earns a decent 1.10% APY with fees and no minimum balance requirements. SoFi charges no ATM fees of its own, and it will reimburse you for any third-party ATM fees you are charged anywhere in the world. If you need physical checks, you can request them from SoFI.

SoFi partners with multiple banks to hold your money in FDIC-insured accounts. This means that SoFi Money accounts are FDIC insured on balances up to $1.5 million in total, well above the standard $250,000 FDIC insurance level available with conventional accounts.


on SoFi’s secure website

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Advertiser Disclosure


38% of Investors Are Worried They’ll Lose Retirement Savings Amid the Coronavirus Pandemic

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

As the coronavirus (COVID-19) pandemic brings the world to a screeching halt, one of its many detrimental effects is its impact on the stock market. With businesses shuttering, unemployment spiking and economic fears rising, the stock market has been hit hard, with multiple indexes plunging to new, multi-year lows in March.

Such a significant decline has taken a toll on individual investors, too. According to a new survey of over 1,000 respondents by MagnifyMoney, 38% of investors fear they’ll lose all of their retirement savings due to the economic turmoil caused by the pandemic. Already, the coronavirus outbreak has caused investors to lose money and alter their investing behavior, our survey found.

Key findings

  • Our survey found that 38% of investors are worried they’ll lose all of their retirement savings because of the coronavirus outbreak.
  • About 59% of investors said they’ve already lost money from investments during the pandemic (this does not include the 26% of respondents who weren’t sure if they had lost money).
  • The majority of the investors surveyed (39%) said they’re avoiding looking at their investment portfolio amid the coronavirus pandemic. On the other hand, 26% said they are “constantly” checking their investments.
  • Roughly 45% of surveyed investors said they had made changes to their portfolio in the last two weeks, as the coronavirus spread throughout the U.S. and across the world.
  • More than 1 in 10 investors said they’ll never feel comfortable with the stock market again, though 29% said they still feel comfortable. Other investors said they’d need to see some positive signs before they felt comfortable again.
  • When asked how the coronavirus will affect their future investing decisions, 55% of investors said it would impact them in some way (this percentage does not include the 13% who weren’t sure). Most notably, 29% will decrease their level of risk, 23% will make sure they have plenty of money outside the market and 21% will further diversify their portfolio.
  • Still, the vast majority of investors (78%) are confident the stock market will recover from the decline associated with the coronavirus. Only 8% don’t think the stock market will recover in their lifetime.

How much investors have lost amid the coronavirus pandemic

With markets swinging wildly and diving to new lows, investors have understandably lost money in the wake of the coronavirus pandemic. In fact, our survey reveals that the majority of investors (59%) have lost money — a figure that did not include the 26% of investors who were not sure if they had.

The bulk of investors who have lost money during the coronavirus outbreak, though, have lost less than $50,000, with 26% saying they lost less than $10,000, 12% saying they lost between $10,000 and $24,999 and 8% saying they lost between $25,000 and $49,999. However, some investors are reporting hefty losses, with 4% losing between $50,000 and $74,999 and 10% losing a staggering $75,000 or more. Meanwhile, our survey found that 15% of investors haven’t lost any money and 26% don’t know how much they have lost.

What’s arguably more alarming, though, is the sheer amount of investors (38%) who said they fear they have lost all of their retirement savings as fallout from the coronavirus pandemic continues to ravage the markets. While that percentage was fairly consistent across generations, it was highest among those in Generation Z. Nearly half (47%) of Gen Z worried their retirement savings would be completely wiped out, compared to 40% of millennials, 45% of Gen Xers and 30% of baby boomers.

One potential reason for the gap in concern between Gen Zers and baby boomers is that younger generations likely have far smaller nest eggs than their boomer counterparts, meaning it wouldn’t take as much market volatility to wipe out their retirement savings.

How the coronavirus pandemic is impacting investor behavior

As the coronavirus pandemic continues to batter the economy, our survey found that many investors (39%) are choosing to avoid checking their portfolios altogether. Meanwhile, 35% of respondents said they are looking at their portfolios occasionally, while 26% said they are checking in constantly.

Of those who are shielding themselves from watching their portfolios plummet, many are baby boomers. Our survey revealed that almost half of baby boomers (48%) are steering clear of checking their portfolio right now, compared to 37% of Gen Xers, 35% of millennials and 27% of Gen Z.

Despite the fact that many investors are opting against looking at their portfolios during this turbulent time, some are still making changes to their investing behavior in response to the coronavirus outbreak. Our survey found that while the majority of investors (55%) have not made any changes in the last two weeks, 19% have taken some money out of the stock market, 18% have reduced their level of risk, 9% have changed the type of stocks they’re investing in and a surprising 8% have taken all of their money out of the stock market.

How the coronavirus pandemic will influence future investing decisions

Stock market ups and downs are par for the course when it comes to investing, and our survey suggests that even the coronavirus pandemic’s impact on the stock market isn’t enough to have a lasting effect on the confidence of many investors. In fact, we found that the majority of investors (78%) think that the stock market will recover from the drop associated with the coronavirus pandemic.

Still, 8% of investors said they don’t think the stock market will ever recover in their lifetime, while 15% investors said they didn’t know if it would. It’s worth highlighting, too, that Gen Zers were far more likely (18%) than any other generation to not have faith that the stock market will make a recovery in their lifetime.

While we did find that most investors are confident that the market will recover from the drop associated with the pandemic, that confidence doesn’t necessarily translate to comfort. In fact, our survey found that 11% of respondents said they will never again feel comfortable with the stock market, which could impact how — and whether — they invest again in the future.

Meanwhile, 29% of investors said they still feel comfortable with the stock market during these turbulent times, though most investors said they’d need to see the following major changes to feel comfortable again:

  • 32% said that the Dow Jones would need to show positive growth
  • 29% said that the number of COVID-19 cases would need to significantly decrease
  • 20% said that news coverage of the stock market would need to turn more positive
  • 19% said the government would need to inject a stimulus into the stock market
  • 10% said they would need their financial advisor to tell them it’s okay

Aside from rattling investor confidence, our survey reveals the coronavirus outbreak could have lingering effects on investor behavior in the future. Only 32% of investors said their future investing decisions won’t be impacted by the coronavirus pandemic. Meanwhile, 29% said it will cause them to decrease their level of risk, 23% said that it would cause them to make sure they have enough money outside of the stock market and 21% said it will cause them to diversify their portfolio more. A striking 4% said they may not invest anymore.

What you should do when the stock market is dropping

When the stock market is taking multiple nose-dives as it has been recently, it’s understandable to feel uneasy. It’s important to remember, though, that investing is a critical component of building a healthy financial life, and stock market declines are par for the course.

In fact, market corrections — which is when the stock market drops 10% or more from its most recent high — happen every few years. Factoring in all corrections, the S&P 500 still has an average annual rate of return of around 10% over the longer term.

During times of turbulence, money moves you can make include:

  • Keeping your emotions in check when looking at your investment portfolio
  • Avoid pulling your money out of a declining market on impulse
  • Making sure you have a solid emergency fund in a liquid savings account
  • Considering a more conservative portfolio allocation if you’re closer to retirement and therefore have a shorter timeline


MagnifyMoney conducted an online survey of 1,010 investors, with the sample base proportioned to represent the overall population. We defined generations as the following ages in 2020:

  • Gen Z are ages 18 to 23
  • Millennials are ages 24 to 39
  • Gen X are ages 40 to 54
  • Baby boomers are ages 55 to 74
  • Silent generation are age 75 and older

The survey was fielded through Qualtrics from March 18-19, 2020.

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