Jab, parry, straight right!
Round three opens with both players showing some sweat. Ringside is exciting or scary depending on the seats and your level of comfort with flying body fluids.
So, if you are not in the ring, what does the ongoing trade fight mean for you?
- The U.S. has increased tariffs to 25% on $200 billion of Chinese imports.
- The U.S. is preparing to impose 25% tariffs on the remaining $300 billion of Chinese imports.
- The average U.S. tariff rate has risen from a global low of 1.4% in 2017 to a developed market high of 4.5%.
- As investor confidence declines, they are less willing to assume risk.
- Declining consumer confidence.
- Market volatility appears to be driven by the current view on trade tensions with China.
- A protracted battle.
- China responded with 25% tariffs on $60 billion of U.S. goods.
- Business confidence declines, investment spending decreases, slowing economic growth.
- If the additional planned tariffs take hold, the average U.S. tariff rate would increase to 7.7%.
- Money would leave risk assets and stock prices would decline.
- Retrenched consumer spending.
- When it appears that it may be about to be resolved, the market responds positively.
- The market declines.
Spectator Sport Only
On an individual basis, this match only serves as a mere spectacle because confident investors stay in their seats. They have the discipline to maintain a long-term investment perspective and as a result, achieve long-term investment success.
That’s why we take the time to go over your risk profile and invest your portfolio with the right asset allocation, the one that gives you peace of mind no matter who is fighting on the world stage. The right asset allocation enables you to stay the course when challenging market environments occur.
If you wish to discuss your allocation or any other concerns, please call us.
Platt Wealth Management is a fee-only advisor helping clients achieve their financial goals. We offer customized financial advice, financial planning, and investment management. If you would like to learn more about our services or request a consultation to review your current portfolio, please give us a call. 619.255.9554.
We provide stand-alone financial plans for a flat fee, investment management as retainer or asset basis points fee. Leverage our full expertise and benefit from discounts with our full wealth management service.