Stocks Drop as Tariffs Rise
Weekly Update – March 26, 2018
Markets experienced significant declines last week. The S&P 500 lost 5.95%, the Dow dropped 5.66%, and the NASDAQ declined 6.54%. [1] With these losses, all 3 domestic indexes had their worst weekly performance in more than 2 years. [2] International stocks also declined, with the MSCI EAFE giving back 2.64% .[3]
What caused markets to stumble in this way? While various economic reports came out and the Federal Reserve raised rates again, another topic triggered the declines: trade war concerns. [4]
Weekly Focus: Analyzing Tariffs and Trade Wars
What happened?
Last week, President Trump approved new tariffs on China as a punishment for taking American intellectual property. The tariffs could affect as much as $60 billion in Chinese imports – and Trump called this the “first of many” trade actions against the country. [5]
China indicated that it may retaliate and is “looking at all options” on how to respond. Apparently, everything is on the table – including targeting 128 American products, no longer purchasing U.S. Treasuries, and taking legal action through the World Trade Organization. [6]
How did investors respond?
The new China-specific tariffs combined with Trump’s steel and aluminum tariffs earlier this month create growing concerns about a trade war. [7] The market declines we experienced last week are largely a reaction to these fears. [8]
What might happen next?
These new tariffs have the potential to create 2 very different results:
- 1 cup frozen strawberries
- ½ cup fresh blueberries
- ½ cup fresh orange juice
- 2 teaspoons chopped and peeled fresh ginger
- ¼ cup plain low-fat (1 percent) yogurt
- 2 ice cubes
Directions:
- Put strawberries, blueberries, orange juice, ginger, yogurt, and ice cubes in a blender.
- Blend until smooth. Occasionally, scrape down sides of the blender.
- Serve.
Recipe adapted from Good Housekeeping [12]
Positioning Yourself for Restful Sleep
You may have heard all the advice about not drinking coffee before bed, keeping your bedroom at a cool temperature, and eliminating distractions. But health experts say your sleep position may be a good indicator of your overall health and your ability to have a good night’s rest.
Unusual or unnatural sleep positions may be causing back pain, snoring, or preventing you from getting a complete night’s rest. Your sleeping position is even a reflection of your personality.
Here are different sleep positions and what they mean to your health and your personality:
- The Stomach: This one may lead to restless sleep and cause neck strains. Try a softer pillow or none at all.
- The Belly (Free Fall): This is similar to the stomach position, except you wrap your arms around a pillow with your head turned to the side. Researchers say belly sleepers are social and outgoing, but aren’t very open to criticism. About 7% of people sleep like this.
- The Back: This one can cause back pain (or make it worse). If you’re a snorer or have sleep apnea, this can exacerbate your problems. Your doctor may be able to help you make adjustments.
- The Soldier: This is like the back position. Your arms are at your side. You’re sleeping at attention. Researchers say you’re generally quiet and set high expectations for yourself and others. About 8% of people sleep like this.
- The Starfish: You lie on your back. Your arms are near your head. You’re generally a good listener and like to be the center of attention.
- The Side: You sleep on your side with your knees close to your chest. This may be the most comfortable side position.
- The Fetal Position: You’re curled up, sleeping on your side. More than 40% of people, mostly women, sleep this way. Researchers say you’re friendly and sensitive.
- The Log: You sleep on your side, both arms down, like a “log.” You’re easygoing and trusting.
- The Yearner: You sleep on your side with your arms in front of you. You’re open-minded, but stubborn and suspicious. About 13% of people sleep this way.
- The Spoon: This generally requires 2 sleepers. It’s commonly referred to as cuddling. Researchers say it reduces stress and helps you go to sleep faster.
Tip adapted from WebMD [15]
Let Your Light So Shine
Hundreds of years ago, our ancestors simply went to bed when it got dark. Thomas Edison and his team of innovators changed the world with the invention of the incandescent light bulb.
Although the light bulb is designed to produce light, only 10% of its energy goes toward making a dark world more visible. The other 90% of the energy generates heat.
Compact fluorescent light (CFL) bulbs, on the other hand, are nearly four times as energy efficient as incandescent bulbs.
Swapping one incandescent light bulb with a CFL one may save 150 pounds of carbon dioxide per year. CFLs use ⅓ of the electricity, lasts nearly 10 times longer as incandescent bulbs, and produce the same amount of light.
Now that’s one bright idea.
Tip adapted from WWF [16]
The Retirement Wealth Management Group
7900 Kirkland Court
Portage, MI 49024
269-978-0238
zack.alkhamis@lpl.com
http://www.retirementwealthmanagementgroup.com
Copyright © 2018. All Rights Reserved.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
Diversification does not guarantee profit nor is it guaranteed to protect assets.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.
The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named representative,
Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
By clicking on these links, you will leave our server, as the links are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site .
[1] http://performance.morningstar.com/Performance/index-c/performance-return.action?t=SPX®ion=usa&culture=en-US
http://performance.morningstar.com/Performance/index-c/performance-return.action?t=%21DJI®ion=usa&culture=en-US
http://performance.morningstar.com/Performance/index-c/performance-return.action?t=@CCO
[2] www.reuters.com/article/us-usa-stocks/wall-street-nosedives-as-investors-flee-on-trade-war-fears-idUSKBN1GZ1O8
[4] www.cnbc.com/2018/03/23/us-stock-markets-set-for-a-sharp-fall-at-the-open-amid-trade-war-fears.html
[5] www.cnbc.com/2018/03/22/trump-moves-to-slap-china-with-50-billion-in-tariffs-over-intellectual-property-theft.html
[6] www.reuters.com/article/us-usa-stocks/wall-street-nosedives-as-investors-flee-on-trade-war-fears-idUSKBN1GZ1O8
www.cnbc.com/2018/03/23/us-stock-markets-set-for-a-sharp-fall-at-the-open-amid-trade-war-fears.html
[7] www.cnbc.com/2018/03/22/trump-moves-to-slap-china-with-50-billion-in-tariffs-over-intellectual-property-theft.html
[8] www.cnbc.com/2018/03/23/us-stock-markets-set-for-a-sharp-fall-at-the-open-amid-trade-war-fears.html
[9] www.cnbc.com/2018/03/24/china-development-forum-heres-what-experts-are-saying.html
www.inc.com/zoe-henry/trump-steel-and-aluminum-tariffs-ripple-effects-your-business.html
[10] www.zacks.com/stock/news/296710/trump-tariff-amp-steel-industry-the-good-the-bad-amp-the-ugly
[11] www.cnbc.com/2018/03/19/signs-growing-for-global-trade-war-that-could-trigger-recession-deutsche-bank.html
[12] www.goodhousekeeping.com/food-recipes/a11134/jump-start-smoothies-recipe-ghk0911/
[13] www.irs.gov/taxpayer-bill-of-rights
[14] www.golfdigest.com/story/why-keeping-your-head-down-is-killing-your-swing
[15] www.webmd.com/sleep-disorders/ss/slideshow-sleep-positions
[16] www.worldwildlife.org/pages/green-tips