This market volatility is unsettling. I think it is mostly due to economic slowdown in some key foreign countries like Germany, and to the trade dispute between China and USA. But I’m still positive because earnings growth is good in corporate America, US consumer spending is strong, unemployment is low, and US-based stocks are not “overvalued” to a concerning degree.
I also think China does not want to actually hurt itself even if it may want to try to hurt the US. China selling too many US bonds too quickly would hurt the US, but it would also cause the Chinese portfolio of US bonds to drop in value
Further, I believe the president focuses on tangible and recognizable measures, like unemployment rate and stock market performance, and thus will want to ultimately do things that keep those #s looking strong. My hope is after some blustering by China and the USA, they will each pull back from the verbal brinksmanship.
For most of us... generally, long-term investors with moderate to aggressive risk tolerance should pretty much ignore the stock market volatility and stay invested in the suitable diversified strategy, even as markets go up and down
I’m happy to talk more if you wish. I’m also sharing some links to articles that I find informative. My firm’s social media presence includes Facebook (Potomac Wealth Strategies, Twitter (@GLPartoyan), and LinkedIn (Garo Partoyan), in case you want to follow me that way.
Thank you, and happy Friday!
Potomac Wealth Strategies, LLC