“It’s Just That Simple”... China Trade Conflict Dominating US Stock Market

Posted in , By David Robinson

The US stock market is ultra-sensitive to one issue now-the trade conflict with China. The uncertainties around global trade, principally the conflict with China, pose the biggest threat to continued US and global growth. Recalling the signature phrase of the late H. Ross Perot, “It’s just that simple.” The US and China may be nearing a deal that would alleviate the tariff back and forth, even if it fails to address any strategic issues in a meaningful way. (New York Times) Any tariff truce that would stanch the economic bleeding for both countries would be a plus for consumers and investors. (Foreign Affairs)

  • Powell Says US Growth Sustainable: While concerned about global economic headwinds, Fed Chairman Powell remains optimistic that the US expansion can continue. Further rate cuts are not off the table, but it is not clear whether there is an internal Fed consensus on future reductions yet.  (Reuters)
  • Earnings Season Off to Strong Start: US companies are beginning to report on their third quarter earnings, and the initial reports are positive. Investors and analysts will be pouring over the earnings tea leaves. Keep in mind that over the long run, earnings matter more than anything to stock market performance. (CNBC)
  • Clean Energy for Less: We recently received a communication from an energy company called Arcadia Power. Their message was that we could reduce our home energy bill through Arcadia while increasing the amount of energy attributable to cleaner energy sources. I’m unable to vouch for their claim but am intrigued with the win-win proposition and wanted to pass it along. (Arcadia Power)
  • Top Ten Places to Retire: Spoiler alert, Fort Myers (Florida), Sarasota (Florida) and Lancaster (Pennsylvania) lead the pack, according to this US News & World Report survey. Truthfully, these types of rankings are only a level or two above meaningless, but I included this one because there are some interesting ways to sort the data to make it more relevant to the individual. (US News)
  • Wirecutter (Consumer Research Tool): I have become a huge fan of Wirecutter, a product research website owned by the New York Times. Wirecutter researches and tests products and then makes a recommendation. In some ways, it is like Consumer Reports but is much better in my experience. Be aware that they get some sort of fee back from the seller if you buy through the Wirecutter website link. I have never had the sense that this colored the recommendation, which often recommends less expensive but highly functional items. But I may be naive on this.   (Wirecutter)
  • Pitfalls of Medicare Advantage Plans: Since we are in Medicare shopping season, I want to caution all who are Medicare eligible to be careful in their choice of a supplement or advantage plan. Make sure you understand what is covered and what is not. Saving money on monthly premiums is a big attraction but be sure to pay attention to co-pays, out-of-pocket maximums, etc., as well. None of this is meant to steer anyone away from or toward an approach (supplement or advantage plan) or a specific choice. The message is to be a fully informed purchaser. (Investopedia)
  • Dog Owners Live Longer: The mortality risk difference is significant. The question is why! Might it be the companionship? The exercise you get from walking a dog?  Both of the above? (Washington Post)

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About the Author David Robinson

A wealth advisor with more than 25 years of experience in the financial field, Dave serves as Robinson Smith Wealth Advisors’ Co-Chief Investment Officer and is a Co-Managing Member of the firm. As a Certified Financial Planner® and non-practicing attorney, he provides clients with deep expertise in areas including investment management and retirement planning.
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