Watch the CPK Market Action Report: August 2019

The Fed cuts rates and the US resumes trade talks with China.
Could this be what the market needed, or is this a sign of trouble on the horizon?

Watch the full 3-minute Market Action Report now:

The Federal Reserve cuts rates and the United States resumes trade talks with China. Could this be what the market needed to continue its march forward, or is this a sign of potentially more trouble on the horizon?

The action starts NOW!

The markets advanced in July on encouraging earnings news and on anticipation that the Federal Reserve would cut interest rates. That anticipation grew after Fed Chairman Jerome Powell’s mid-month testimony on Capitol Hill.

The S&P 500 gained 1.3 percent in July and passed 3,000 for the first time.[1][2] The Dow Jones Industrial Average rose 1 percent and the Nasdaq Composite increased by 2.1 percent.[3]

The Fed made a quarter-point cut on July 31st. Chairman Powell did not suggest that additional cuts were coming. Addressing the media, he called the move a “mid-cycle adjustment to policy.”[4]

Some analysts see the Fed cut as a precaution. Its latest policy statement cited “global developments” and “muted inflation” as factors, and those are concerns.[5] Yearly inflation is still under the Fed’s 2-percent target.[6] At last look, China’s economy was growing at its slowest rate in 27 years.[7]

Trade talks resumed between the U.S. and China. On July 30, trade delegates met, face to face, in Beijing for the first time in months. The market certainly wants a quick resolution to the trade dispute, but the reality may be different. In late July, Treasury Secretary Steven Mnuchin commented that it could take “a few more meetings” to see any progress.[8]

This month, the Fed and U.S.-China trade relations will likely remain “top of mind” on Wall Street. Note that the Fed’s annual Jackson Hole symposium starts August 22. This event attracts central bank officials from around the world, and the Street pays close attention to what they say. There will also be plenty of earnings calls as the Q2 earnings season rolls on.[9]

My attention will remain on the domestic and international equities.

On the domestic front, I will focus on Large Cap Growth, Small Cap Growth and Mid Cap Growth. In particular, I will be interested in the Technology, Utility, Industrial, Communication Services and Financial sectors. As for International Equities, my focus will remain on Asia-Pacific Emerging Markets and European Emerging Markets.

Keep in mind, nothing I talked about today is a recommendation. My interests may change as I continue to monitor 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 August 2019 Market Action Report.

Thanks for joining me.

It’s time for me to get back to the markets.

And that action starts NOW!

Sources: