Big Trouble in (not so) Little China? - 3 Key Factors
Today is a reminder of the havoc tariffs can wreak on an overly optimistic stock market. US Large Caps dropped about 2.4% and international followed suit.
Last week the US bumped tariffs on 200 billion of Chinese goods and in turn they retaliated. High hopes of a trade deal are withering away quick. Volatility is up and we think it's likely to continue throughout the summer as geopolitical risks seem to be staying around.
For most investors, we think it would be smart to consider the following:
US Government Bonds - Historically provide stability and income during times of global uncertainty.
Diversification - Find and mitigate strong portfolio correlations.
Allocation - Make sure you have the appropriate amount of risk assets based on your personal situation and goals.
We recognize there are risks out there that could move the markets off trajectory quite rapidly. However, we still believe there is a narrow path ahead though balanced and patient investing. - JML