The Trade War that Isn’t—Yet
When most of us hear talk about something described as a “war,” we intuitively recognize that there could be very unpleasant outcomes on all sides. Wars have one thing in common: there is seldom a clear-cut “winner” amid the damage and destruction.
So when President Trump declares a “trade war” against the world’s second-largest economy, it’s natural that many people—including, apparently, a large number of investors—would feel spooked about what’s to come in our collective future. This explains why every escalation of words, and new lists of things that will be taxed at U.S. and Chinese borders, has provoked sharp downturns in the markets.
But what, exactly, is a “trade war?” Beyond that, what is a “trade deficit” and why are we trying to “cure” America’s trade deficit with China? Read More “The Trade War that Isn’t—Yet”
By Colleen Weber, CFP®, CPA
Regardless of whether you are an avid reader of Market Watch or just tune in to the nightly news every now and then, you know that 2017 was a banner year for stocks. In fact, both the Dow Jones and the S&P 500 celebrated the launch of 2018 by reaching record highs1 and until the beginning of February 2018, we were experiencing the second-longest bull market since 1929. Read More “Is Your Retirement Plan Ready for a Market Downturn in 2018?”
2018 First Quarter Market Report
Is the bull market finally over? For the first time in nine calendar quarters, the U.S. investment markets delivered a negative overall return. It was only a slight decline, but the decline reminds us that markets can and do go down from time to time.
Economists and traders pay a lot of attention to something that probably doesn’t keep you up at night: the FOMC Minutes, or, in English, the summary of the discussion among decision-makers on the Federal Reserve Board, known as the Federal Open Market Committee.
What do they discuss? The health of the U.S. economy, the prospects for inflation, and whether interest rates should be raised or lowered. The latter issue, of course, is the reason for all the fuss; traders want to know if rates are going to go up faster than people expect, which might slow down the economy and reduce demand for stocks. Read More “Sunny Weather Forecast”