Volatility Continues as Trade Tensions Remain High

Coming off years of strong investor confidence, volatility has become the name of the game. 2018 was a hard year for equity markets when, for the first time in almost a decade, we saw indices hit bear market territory. Stocks came roaring back just a quarter later, only to give way to large intraday fluctuations throughout markets as we head through the 2nd quarter of 2019. The losses are adding back up.

Trade War Impacts on Portfolios

Renewed trade tensions between the US and China continue to drag on the economy. These most recent events sit heavily on our minds as they take their toll on investor portfolios. The S&P 500 is down over 4% this month alone, with international and emerging markets taking an even greater brunt of the escalating trade war. However now, as before, is not the time to panic. While we may be tempted to think that things are “different” this time, that action must be taken, the evidence continues to show that value lies beyond the speculation of market influences.     

Looking to the Future

Remember, we’re long-term investors in efficient, forward looking markets. At any given moment, the most likely outcome of any given event is reflected in current pricing. The ongoing trade wars, future elections, and partisan infighting are but the most recent market risks (of many) to present themselves. How these events will play out is anyone’s best guess, with each just as likely to end one way, as another. Attempting to predict which side the coin will land is a risky proposition, that all too often will end in mistakes and underperformance, especially over the long-term.

So, tune out the market noise and turn off the financial pundits. Remaining disciplined and committed to your investment strategy continues to be the most practical way investors can react when markets play rough.

Share Button

Mutual Fund Partner DFA Introduces Exchange-Traded Funds and Lower Fees for Claris Clients

Dimensional Fund Advisors (DFA), our long-term Mutual Fund partner, has a few exciting developments that will help us better serve our clients. Although Claris is independent of DFA, DFA is…
Read More.

2020 Brings A Shifting RMD Landscape for Retirees

While almost everyone has been impacted as a result of the pandemic, retirees have faced their own unique set of challenges. Between maintaining their own health and safety, considering how…
Read More.

What Should Not-for-Profits Be Doing About Their Investment Portfolios During COVID-19?

Over the years, myself and many of my evidence-based investing colleagues have noticed interesting reactions from our newer not-for-profit clients during times of market distress. Frequently, we will be asked…
Read More.

How Election Results Impact Market Returns

Every four years the citizens of the United States exercise their constitutional right to vote. It is also around this time of year that opinions, predictions and prognosticators reappear after…
Read More.

Is Passive Investing Creating a Bubble?

Investors have started asking questions around a passive investing “bubble” they’ve been hearing about recently. The basic argument behind the financial press coverage of this “bubble” is that the popularity…
Read More.

How to Avoid Curve Balls in Your Investment Strategy

In my early years of playing in the MLB, it was always said that one of the most difficult feats in all of sports is hitting a Major League curve…
Read More.