As your financial advisors, it is our goal to keep you updated on recent developments concerning the volatility experienced in the financial markets.
What's causing the volatility? The Federal Reserve has been slowly raising interest rates over the past year to ward off higher inflation since the U.S. economy has strengthened. Rising rates help slow the economy by making it less appealing to borrow money. In addition, the ongoing trade war between the U.S. and China is having a major impact, with the two nations threatening more tariffs. Investors are worried because the U.S. and China are the world's two largest economies.
The bottom line is that the U.S. economy remains strong, and growth is healthy. Unemployment is low; the number of people working is rising steadily;and wages are up. Unless something has changed with your investment time horizon, objectives or risk tolerance, there is no compelling reason to change your investment discipline. We believe investors who stick with their investment strategy and maintain a diversified portfolio are prepared for future market shocks and are well-positioned for market hits.
If you'd like to review your financial goals and current circumstances to help assure that your strategy remains consistent with your needs and preferences, please give us a call. You can always count on us to monitor your account(s), evaluate market changes, and provide appropriate guidance
Diversification does not guarantee a profit or protect against a loss.