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CPK Wealth Management - September 2019 Market Action Report

China retaliates as new tariffs officially go into effect. With more tariffs going into effect in December, markets are heavily focused on the Fed’s next moves.

Your 3-minute Market Action Report starts now:

September 2019


China retaliates as new tariffs officially go into effect. With more tariffs going into effect in December, markets are heavily focused on the Fed’s next moves.

In August, all eyes were on the U.S.-China trade dispute. The White House announced new tariffs on Chinese goods. Some are effective now; some will be effective in December. China retaliated, in two ways. First, it manipulated its currency. That makes Chinese goods cheaper, and it may help offset the impact of tariffs. Second, it scheduled new tariffs on American goods. However, trade talks between the U.S. and China are expected to resume this month.

Last month, the S&P 500 lost 1.8 percent. The Dow Jones Industrial Average fell 1.7 percent. The Nasdaq Composite was down 2.6 percent. On Main Street, consumer spending was strong. So was consumer confidence. Core retail sales were up one percent in July. Personal spending was up sixth-tenths of a percent.  According to the Conference Board, households thought the current economic situation was the best it’s been in 19 years. Bond prices rose in August, driving down bond yields. When July ended, the 10-year Treasury was yielding 2 percent. When August ended, the yield was 1.5 percent. Right now, Wall Street is focused on trade. But it may also respond to the August jobs report as well as the Fed’s next meeting, which wraps up on the 18th. Investors are eager to see what the Fed has to say about U.S. monetary policy.

Heading into September, I have narrowed my focus to just domestic equities. I have also slightly increased my overall cash position. Within Domestic equities, I will continue to focus on Large Cap Growth, Mid Cap Growth and Small Cap Growth. However, I have consolidated my interests here to just the Technology, Utility and Industrial sectors. Just keep in mind that nothing I talked about today is a recommendation. My interests may change throughout the month as I continue to monitor economic and geopolitical conditions, the Fed’s moves and trade talks. Regardless of what happens next, investors like you need to have a simple and yet solid financial plan that reduces RISKS, COSTS & TAXES while securing the necessary income you need to maintain your lifestyle throughout retirement.

If you don’t have a plan, OR you’re not comfortable with the plan you have, call me today to get pointed in the right direction. I'm Chad Kunc, and that puts a wrap on the September 2019 Market Action Report. Thanks for joining me. t’s time for me to get back to the markets. And that action starts NOW!


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