Get Off the Media Merry-Go-Round [VIDEO]
Investor Insights, March 29th, 2018
Five Things You Should Know
- Equity Markets – bounced back in this shortened week with U.S. stocks (S&P 500) up 0.85% and international stocks (EAFE) up 1.01%
- Fixed Income Markets – were also positive with investment grade bonds (AGG) up 0.57% and high yield bonds (JNK) up 0.17%
- Tariff Update – the Wall Street Journal reported earlier this week that the Trump administration had begun talks with the Chinese on select trade imbalances. While the talks are not likely to resolve quickly they would seem to indicate a reduction in the chances of an escalating conflict. Treasury Secretary Mnuchin said he is optimistic a deal will be reached.
- North Korea – news broke this week of a visit by Kim Jong Un to China, his first trip outside North Korea since taking power in 2011. The news was widely seen as a positive as Kim continues to embrace diplomatic measures, and China has long been looked to by other countries to aid in the denuclearization of North Korea. Jong Un is also set to be the first North Korean leader to visit the South on April 27th when he’ll meet with President Moon Jae-In.
- Key Insight – The media/news seemingly find something to frighten investors 100% of the time, and yet the reality is that the U.S. stock market had finished up for the year over 75% of the time the last four decades. That said, volatility like we’ve had year-to-date, and losses in excess of the 1% we had this quarter are inevitable—but also normal and nothing investors need to live in fear of with the right plan in place.
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