Disclaimer: These are the views of Summit Financial Consulting and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
As of August 23rd, 2018, the DOW Jones Industrial average is up for the year 3.39% while our aggressive portfolio at TD Ameritrade is up 9.05%. This equates to a 5.66% outperformance for the year. The Barclay’s Aggregate Bond index is down -2.49%, while our most conservative portfolio, the income portfolio, is up 3.34% year-to-date. We’ve been able to navigate the bond market successfully this year by reducing interest rate sensitive holdings during the larger upswings in rates. Our portfolios have reached all-time-highs several times this month and throughout the year as the stock market struggles to get back to where it was in January.
Overall the US economy is still doing well even with trade talks escalating and a total combined $100 billion of tariffs being imposed by the United States and China. With the Chinese economy slowing, authorities have actually instructed the Chinese media to scale back direct attacks on Trump and references to the trade war in connection with their economy. President Trump’s latest threat to impose an additional $200 billion in tariffs on Chinese goods could push up prices and cost U.S. consumers as much as $6 billion according to a new study released this week. This would be a potential short-term ramification of a long-term strategy by the POTUS to balance the global playing field (Source: http://thehill.com/policy/finance/403370-retailers-study-shows-more-trump-tariffs-could-cost-consumers-6-billion).
The markets now turn their attention to other potential market movers like the much-anticipated annual Jackson Hole Symposium in Kansas City. This is where central bankers, finance ministers, and the leading financial players across the globe gather yearly to cover noteworthy issues concerning the US and international economies. It’s not uncommon to see kneejerk reactions and swings in global markets following the conference. We will be tuning in.
The good news is our short-term indicator remains green at this time. We will continue to closely monitor the markets and economy as whole. Even in a sideways market, we can potentially make money by keeping an eye on our daily risk ranges and buying low and selling high accordingly. We will let you know if there is a situation which calls for immediate attention.
If you have any questions about taxes, your investment portfolio, our 401(k) recommendation service, or anything else in general, please give our office a call at (586) 226-2100. Please feel free to forward this commentary to a friend, family member, or co-worker. If they would like to be added to our free commentary, please send us an e-mail at firstname.lastname@example.org at your earliest convenience. If you have had any changes to your income, your job, your family, your health insurance, your risk tolerance, or your overall financial situation, please give us a call so we can discuss it.
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Summit Financial Consulting
Summit Financial Consulting LLC
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services offered through Summit Financial Consulting LLC, a Registered Investment Advisor in the State of Michigan.