Considering the recent market volatility, we’d like to share the thoughts of our investment committee.
Stocks have come under pressure as trade negotiations between the U.S. and China heat up. In our view, both countries would benefit from easier trade policies which give us a reason to think that the conversation is important to both parties. As always, we continue to believe that financial planning should drive your overall risk allocation to stocks. Volatility in the market isn’t ideal but we know that if we can understand your overall financial plan and determine the appropriate amount of risk to be taken, we do not need to be irrational in times of stock market volatility.
Our investment committee has been following Bob Doll CFA®, Nuveen Investments Chief Equity Strategist, for the last 15+ years and we believe he continues to have perspectives that are insightful and rational. Below are some of his thoughts relating to the market that should provide additional context to the current economic environment:
- Stocks experienced their worst week of the year as trade issues took center stage.
- The broad issues between the U.S. and China will not subside any time soon, but we remain cautiously optimistic that some sort of trade agreement will be reached that provides near-term policy clarity.
- Until that happens, stocks and other risk assets will remain vulnerable, and the global economy will remain under pressure.
Here is a link to the full commentary from Bob.
Please don’t hesitate to reach out to any member of the BWP team with questions.