Stay the Course in Volatility
Investors woke to the news on Monday that the People’s Bank of China had manipulated its currency, allowing the yuan to fall to its lowest level versus the dollar in a decade. A weaker yuan makes Chinese exports less expensive in foreign markets. It can also help offset the impact of U.S. tariffs on Chinese products.1
The currency news comes just days after the U.S. announced plans to tax $300 billion of Chinese goods at 10% starting in September. The new round of tariffs are in addition to the existing 25% tariffs imposed on $250 billion in Chinese products. It also comes less than a week after the Federal Reserve lowered short-term interest rates by 0.25%.2,3
For investors of any level, this type of market volatility is unnerving and can make you question your portfolio’s approach. But remember, your financial strategy is based on your goals, your tolerance for risk, and your time horizon. We designed this approach so you never need to make hurried decisions when volatility picks up.
Now, there may be a situation in the future when you may need to adjust your strategy. This is part of smart investing, but those changes should be driven by your personal situation, not headlines that can cause quick dips and perhaps fast relief.
As financial professionals, we keep a close eye on the markets and watch for any shift that may call for a change in your portfolio. We consult experts on what may be next and work tirelessly to stay atop financial trends, so you can rest easy even when market turbulence hits.
This material was prepared by MarketingPro, Inc. for informational purposes only. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This material is not to be construed as tax, legal or investment advice. Information has been gathered from sources believed to be reliable, but individual situations can vary. Please consult with an investment, legal, accounting or tax professional about your unique situation.
1 - washingtonpost.com/business/chinas-yuan-falls-below-7-to-us-dollar/2019/08/04/b965158a-b726-11e9-8e83-4e6687e99814_story.html [8/5/19]
2 - cnbc.com/2019/08/05/cowen-says-china-trade-war-response-on-a-scale-of-1-10-its-an-11.html [8/5/19]
3 - bloomberg.com/news/articles/2019-08-01/five-things-you-need-to-know-to-start-your-day-jytav9r9 [8/1/19]