Weekend reads: how to invest when the stock market is tumbling

The worst start to the year in four months for the S&P 500 since 1939 was bad enough, but this week’s stock market volatility was shocking: a 932 point rise for the Dow Jones Industrial Average on May 4, followed by a 1,063 points decline the next day.

On Thursday, there were signs of panic selling on the New York Stock Exchange, and business insiders have accelerated their selling activities rather than pick up discounted shares of their companies.

What now? Is there anything you can do to protect your investment portfolio or take advantage of the volatility? Jeff Reeves outlines eight defensive strategies.

If you’re looking to bail, Market Extremes’ Hayes Martin expects a bounceback rally that could provide that selling opportunity.

For a long-term view, Brett Arends spoke with Ben Inker, co-head of asset allocation at GMO in Boston, who has specific advice on where investors building nest eggs for retirement should invest their money.

More on the moody stock market:

Protecting your money when interest rates rise

The Federal Reserve took two key policy steps this week to fight inflation by reducing liquidity. Bond investors anticipating the Fed’s actions had already sent interest rates much higher, fueling the decline in stock and bond prices this year and sparking concerns about a near-term recession.

Here’s recent coverage and advice on how to navigate tough times for your wallet, savings and investments:

A reality check after the bull market

FactSet

“Unicorn” start-ups — worth $1 billion or more — were hot items during the long bull market. One example was Carvana, which disrupted the used car market with streamlined service. Times have changed, as you can see from the chart above. This is how Carvana’s desperate situation applies to other unicorns.

Another reality check after the bull market: IPO ETF Drops 8% Amid Market Bloodbaths For Expected Bausch + Lomb Prices

Zillow underlines the uncertainty

Zillow

In November, Zillow said it would end its home buying and selling business to focus on its core online home listing and brokerage services and mortgage lending. The company reported its first quarter results after the close on May 5 and said revenues in its core Internet, media and technology were up 10%, ahead of expectations.

It was certainly a good quarter, better than analysts expected. But in this market, all eyes are on companies’ forecasts during the earnings season. Shares of Zillow fell 15% in pre-market trading on May 6 after CEO Rich Barton said the outlook for the US housing market “could be choppy in the near term.”

Retirement locations for every need and wish

State Capitol Building in Dover, Del. †

Getty Images/iStockphoto

Silvia Ascarelli writes the “Where should I retire?” column. This week she helps a married couple who are retiring and want space for a large garden, goats and chickens. Here are three possible locations.

Check out MarketWatch’s retirement location tool for your own custom search. It contains data for more than 3,000 US counties and includes climate risks.

Once you’re there: 5 tips for finding meaningful part-time work after retirement

The results of physical activity studies may surprise you.

A threat to Apple

MarketWatch photo illustration/iStockphoto

Apple has an incredibly loyal following, and not just because iPhones are so reliable. The company says it protects consumers with strict control over the software running on its devices. But politicians and regulators are addressing some of the limitations, as Jon Swartz reports.

A great thrift store find

Laura Young made a new old friend at Goodwill for $34.99.

San Antonio Art Museum

“Shopping” doesn’t necessarily mean looking at the latest fashions and high price tags. Digging around can highlight a real bargain, as it did in a Goodwill store for this Texas art collector.

Forget the craze in investing and read this book — or spread the word

Getty Images

The problem with reading a book that offers informed advice on investing is that it is best read by someone who is more inclined to follow fads than tried and true methods of building wealth. The tortoise defeats the hare.

Here are 11 crucial lessons about money and investment from Brian Feroldi, author of “Why Is The Stock Market Going Up? Everything You Should Have Learned About Investing In School But Weren’t.”

The effects of the tight labor market

Have you been waiting longer for food delivery?

Brandon Bell/Getty Images

High inflation and a tight labor market make it very difficult for companies to balance pricing and costs. Shares of Lyft plunged after the company said it would increase spending to attract more drivers. Ride-sharing rival Uber tried to avoid a similar market reaction by pushing up its earnings announcement, but its stock also collapsed.

Domino’s Pizza is also struggling with a driver shortage.

Starbucks is also in transition as a segment of the workforce is uniting with unions. Another challenge for the company is changing consumer tastes, Tonya Garcia reports.

How useful is your fitness tracker?

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