By: Josh Koehnen, MsBA, CFP®
If you’ve watched the news, picked up a newspaper or clicked on a link recently, you’ve probably been bombarded with information about the trade war the United States has been engaging in with China. Since the moment Trump took office in 2016, and even before that, he had been vocal about his issues with China’s trade dealings and policies. After failed negotiations and billions of dollars in tariffs from both sides, it seems as though there isn’t much of an end in sight to this scuffle. In theory, these tariffs should make American goods cheaper and inspire consumers to purchase American products, but some US businesses claim they are being harmed. While this trade war rages on, investors around the world continue to worry about their money and what would happen to the global economy and the stock markets should it escalate further.
We are big believers that you should not let politics dictate your investment decisions. This trade war is certainly disruptive, but it is not something that should cause you to be fearful. Much of the data is showing that it is affecting China much worse than our own economy. Remember that we invest in companies, not countries. Also, keep in mind that we have planned for this type of uncertainty. As your advisor, it’s our job to set up a long-term financial plan that leaves wiggle room for short-term market volatility. We must remain focused on what we can control, stay disciplined in our plan we’ve committed to and remember that we built a globally diversified portfolio for this exact reason – so your eggs are not all in one basket. Tune out the noise and don’t let temporary chaos paired with media hype distract you from your enduring financial strategy.
Investment Advisor Representatives offering advisory services through Premier Wealth Advisors (PWA), a registered investment adviser. Securities and additional advisory services offered through Independent Financial Group, LLC (IFG), a registered broker dealer and a registered investment adviser. Member FINRA/SIPC. PWA and IFG are unaffiliated entities.