The calm, steady climb higher for stocks in 2017 has been replaced by the re-emergence of volatility driven by a continuous stream of headline-grabbing events. Although most are of little consequence to the long-term growth and prosperity of global economies, the recent back-and-forth between the U.S. and China on trade policies and tariffs is worth a closer look. We encourage you to read the piece we completed to gain more insight into the dispute so far, what could be expected moving forward, and how to think about your investments in this context. Click here to download and read our April 2018 edition of Perspectives.
Although a true trade war could have long-term negative effects on the global economy, we believe that this is a relatively low probability outcome at this time. Despite the headlines, we believe that leaders in both the U.S. and China understand that adding tariffs, or any kind of taxes, to the exchange of goods reduces prosperity.
If you have any questions or concerns regarding your portfolio, the financial markets, or the economy in general, please do not hesitate to contact us.