Latest posts by Dr. Brian Jacobsen, CFA, CFP® (see all)

    Every Friday, Brian Jacobsen provides perspective on key events and topics of the current week and his thoughts about what the week ahead may hold. Here’s his report for the week of April 25–May 1, 2020. Plus: Since we’re starting a new month, there’s a quick recap of the big stories from April.

    It looked like something broke in the market for oil last week. On Tuesday, West Texas Intermediate (WTI) crude oil prices fell to -$37. Yes, you read that correctly: There was a negative oil price. During the financial crisis, people learned that, for interest rates, there was not a zero lower bound. Now, in some special circumstances, there is not even a zero lower bound for prices. So, what happened and what might it mean for oil markets looking ahead?

    As investors reflect on recent market events surrounding the coronavirus, oil market turmoil, ongoing shutdowns, and events that have yet to unfold, they are contemplating what all this means for how they should invest. Avoiding rash decisions that are driven by fear or greed and sticking with a well-laid plan are at the top of the list. Equally important is working with partners who have the experience and discipline to put current market conditions in context and who can help investors successfully navigate new risks and opportunities that are emerging across capital markets. We asked senior investment leaders from Wells Fargo Asset Management to succinctly comment on the role that active management plays in times like these. Their responses are shared below.