Weekly Update – July 2, 2018
International trade concerns continue to create uncertainty in markets around the world.  Despite the markets’ slight rises on Friday, June 29, they recorded losses for the week.  The S&P 500 fell 1.33%, the Dow gave back 1.26%, and the NASDAQ dropped 2.37%.  Internationally, the MSCI EAFE declined 1.10%. 
Friday also marked Q2’s last trading day. The U.S. economy remains strong thanks to low unemployment numbers and strong corporate earnings.Meanwhile, on Thursday, the Fed announced that all but one bank passed stress tests evaluating their ability to weather a financial downturn.
This week, we’ll address President Trump’s proposed tariffs on international imports and their effect on stock performance. 
The Breakdown: Global Trade Concerns
President Trump maintains that China and other countries have consistently practiced unfair trade tactics and imposed large tariffs on U.S. exports.  In response, the White House has proposed raising tariffs on imports from China, Canada, and other countries. 
Unfair trade practices take several forms. In one scenario, foreign governments subsidize companies that export products. Those companies may in turn sell their products in the U.S. below cost. This approach can harm U.S. companies, cost jobs, and ultimately damage the economy.  The President also argues that imported metals are a threat to national security. 
The Impact: New Tariffs on the U.S.
Canada has responded to increased rates on steel and aluminum by announcing $16.6 billion in new tariffs on U.S. products, effective July 1.  On July 6, President Trump will determine whether to impose additional tariffs on $34 billion of Chinese goods.  Additionally, the U.S. Chamber of Commerce estimates that 2.6 million U.S. jobs could be on the line due to the administration’s trade policies. 
Already, nearly 21,000 companies have asked for tariff exclusions to import metal duty free. Some of these companies claim the current trade disputes have resulted in layoffs and possible relocations or closures. 
Looking Ahead: Ongoing Global Developments
Third-quarter trade developments will continue to influence markets and emerging economies.  In addition, after the financial sector just posted its longest losing streak ever, analysts will be looking at how and whether they bounce back. Meanwhile, markets will also track the yield curve, which measures the difference between short- and long-term bond pricing. The curve has flattened to its lowest levels since August 2007, as investors drive up long-term bond prices in their search for safety from market volatility. 
As details continue unfolding, we’ll be sure to keep our pulse on what lies ahead. In the meantime, please contact us if you have any questions on how these details relate to your financial life.
- ½ cup whole milk
- 1¼-ounce package active dry yeast
- 2 tablespoons granulated sugar
- 3 cups all-purpose flour
- 4 tablespoons unsalted butter, melted
- 1 teaspoon kosher salt
- Oil, for pan
- ⅓ cup raspberry jam
- 2 teaspoons lemon zest
- 2 tablespoons fresh lemon juice
- 2 cups frozen raspberries (do not thaw)
- 2 tablespoons heavy cream, for brushing
- ½ cup sour cream
- ¼ cup confectioners’ sugar, sifted
- ½ teaspoon pure vanilla extract
- Heat milk and ½ cup of water on medium-low in small saucepan until warm (but not hot).
- At the same time, whisk yeast, granulated sugar, and 1 cup of flour in a large bowl. Stir warm milk into the bowl. Cover and set to the side until the mix is thick and foamy, about 15 minutes.
- Put in melted butter and salt and slowly mix in remaining 2 cups of flour. Cover the mix. Let it rise until it doubles in size, about 1 hour.
- Coat an 11″ x 8″ casserole dish lightly with oil. Lay parchment paper in a pan as a lining; leave 3″ overhang on the 2 long sides. Oil the parchment paper.
- Mix jam, lemon zest, and 1 tablespoon of lemon juice in a small bowl.
- Lay the dough on a floured surface and roll it into a 12″ x 9″ rectangle. Spread jam mixture over the top; then top with raspberries.
- Roll dough from the long side into a tight log. Pinch the seams to seal.
- Use a long piece of unflavored dental floss to cut the dough log into 12 1″ thick rolls. Use the floss by sliding it underneath the dough.
- Place the rolls, cut sides up, onto the prepared pan. Cover the pan and let the rolls rise until they have doubled in size and begin to touch each other, 50-60 minutes.
- At the same time, heat the oven to 375°F. After brushing the rolls with heavy cream, bake until they are puffy and light golden brown, 25-27 minutes. Let the rolls cool on a rack for 10 minutes.
- Frosting: Mix sour cream, confectioners’ sugar, vanilla, and the remaining 1 tablespoon of lemon juice. Spread the frosting over the warm rolls.
Recipe adapted from Good Housekeeping
Fixing Crooked Iron Shots
Top golfing coaches say the best way to achieve lower golf scores is through better ball control, particularly the clubface.
- nfants: 12-15 hours
- Toddlers (ages 1-3): 11-14 hours
- Preschoolers (ages 3-5): 10-13 hours
- Schoolchildren (ages 6-13): 9-11 hours
- Teens (ages 14-17): 8-10 hours
- Adults: 7-8 hours
Insomnia occurs when you can’t get to sleep for many nights or you stay awake for hours. Insomnia may be caused by bad habits, such as drinking coffee or having a heavy meal too late in the day, or leaving the television on.
Seek medical advice if you think you have a sleep disorder. Your doctor may ask you several questions:
- What time do you go to bed and get up?
- How long and well do you sleep?
- How long do you stay awake in bed?
- What have you been eating and drinking?
- What drugs do you take?
Treatment for a sleep disorder may include using a continuous positive airway pressure (CPAP) machine. Other sleep disorders are often treated with lifestyle changes and medications.
Exercise in the late afternoons can also help promote restful sleep.
Tips adapted from WebMD 
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The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.