Over the past few months, we have seen renewed trade war talks, a rate cut by the federal reserve, and discussions of inverted yield curves due to monetary and fiscal policy. As a result of this activity, I wanted to give you timely update.
Trade War Commentary:
- Trump imposed a 10% tariff on $300 billion of Chinese imported goods
- As a retaliation, China devalued the Yuan and ceased purchasing US agricultural product
- The US labelled China a “currency manipulator” allowing the US to impose further sanctions
- These tariffs will have a negative impact on global growth, however, increased central bank support will help soften the impact of the higher tariffs
- I don't want to be selling the stock market as long as yields are this low and the economic cycle is still okay. Especially because There Is No Alternative (TINA) as cash and bonds are paying a low rate of return.
Do not hesitate to reach out if you have any specific questions.