Summer Market Slump
Tape Talk | Investing, Business, Wealth, and Your Money
English - August 10, 2019 09:05 - 38 minutes - 36.4 MB - ★★★★★ - 39 ratingsInvesting Business Education Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
On this week's episode of Tape Talk, Quint and Daniel discuss the recent volatility across markets and what that means for investors.
Trade War
While stocks moved on the Federal Reserve's implication that the recent rate cut was not the start of a new trend, the move was propelled much further by matters worsening on the trade war front. After the Trump Administration broadcasted additional tariffs set to take effect, China released news of decreased purchases of United States agriculture products.
7.0, A Key Level
Over the weekend, the Chinese Yuan broke the all-important 7.0000 psychological level which indicated the country was allowing their currency to devalue versus the US-dollar. This move effectively shifted the trade war from a matter of goods and services to a currency scuffle which US markets, with their volatile trading on Monday, indicated would be a fearsome escalation.
Required Return
While seeing your investing and retirement accounts gyrate with the forces of the market is never palatable, it does help to understand how the moves affect your investing goals. By understanding your required rate of return you might be able to sleep easier at night by knowing if recent volatility is something to be concerned about or just already factored into your plan.