Stocks! China! Trade Deal!
The Trump presidency has been nothing if unpredictable. The President seems to wake up with new tweets on his mind every day, and the markets love overreacting to every one. The result is a stunning whip shaw effect of large market moves up and down, often during the same day. This morning, U.S. Trade representatives said that the new tariffs Trump announced in a tweet on August 1 would be delayed. Some tariffs will be delayed until September 1 and others until December. Does that mean that progress is being made on a trade deal? Only the President knows, although he doesn’t really know either. Depending on how talk show hosts talk over the next few weeks, and what he advisors say, he may or may not think he is getting a good deal. Or getting credit for a good deal. Or maybe just get bored. Long-Term Diversified Portfolio Every financial planner eventually gets tired of beating this drum, but the answer is always the same. A long-term, well-balanced, risk adjusted, annually rebalanced portfolio is the solution to the dramatic, unpredictable moves of the market. Sooner or later, this market will roll over. Although, the tons of analysts “predicting” it …
