June 2019 Commentary: Tariffs and Trade War ImplicationsSubmitted by MidWestOne Investment Services on June 12th, 2019
Getting back to the business mode this week…….
May was a rough month for equity markets, as the S&P 500 fell over 6% in May. Even with that ugly patch, the S&P 500 was still up nearly 11% in 2019 through May. More recently, the index has continued its charge forward in the first week of June, gaining almost 5%. This, despite some tough talk and escalating fears that we might engage in a trade war with Mexico. Here is a link from a recently written LPL Research letter that goes deeper into the tariffs and trade war implications.
What all of this reminds me of is the difficulty in predicting the markets. While the basics of it is - does Company A make money, the reality of it is - making money isn’t enough. Did they make more or less than was expected? Were they in a bad sector of the market? Is it just tough out there for all stocks, both good and bad? All these choices and all the chatter making the markets bounce emphasize the importance of having a financial plan to guide you. Having that plan gives decision making direction and provides a logical foundation for when emotions might be running a little higher or hotter. Summertime pulls us in a lot of directions, but we are happy to sit down with you to review your financial plan if you need.
Thank you very much for your support and enjoy the beginning of summer!!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.