(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Home Chris Lai Market Currents- 04/02/2018
Back Home

Market Currents- 04/02/2018

byAscentadmin inChris Lai posted onApril 2, 2018
0
0
Market Currents- 04/02/2018

Market Currents

 

  • Volatility Returns. After a prolonged period of relative market tranquility, with equities grinding steadily higher without much of an interruption, volatility has returned to the market in 2018.  There were sharp movements, both to the upside and down, through the year’s first quarter, although equity markets finished the period essentially flat.  Bonds declined slightly, due to higher rates in effect.

 

  • Trade War, Or Prelude to Trade Negotiations? Much of the recent market volatility was driven by tariff announcements, and fears of a budding trade war between the U.S. and China.  In March, the administration announced plans to impose tariffs on up to $60 billion of Chinese imports.  The Chinese responded with retaliatory tariff announcements on U.S. exports.  Investors have generally discounted the saber-rattling over trade issues so far, but the matter is a delicate one and its course is not predictable.

 

  • Markets De-Fanged. Two prominent technology stocks, Facebook and Amazon, saw late-quarter weakness.  Internet privacy issues surfaced for Facebook, as the company was revealed to have sold user data to an analytics firm that used the data to target voters in the 2016 presidential election.  Separately, President Trump renewed his post-election attack on Amazon’s business practices with a multi-day series of tweets that continue even now.

 

  • The Fed Hikes Rates. The Fed, under Chairman Jerome Powell, raised interest rates by another 0.25% in March.  The widely-expected move was the sixth increase to short-term rates (now at 1.75%) since normalization efforts began at year-end 2015.  Along with the increase came another upgrade in the Fed’s economic forecast, and a hint that the path of rate hikes could be more aggressive.

 

  • Exodus at the White House. More high-profile departures hit the White House.  Gary Cohn, the top White House economic adviser, resigned from the administration, following disagreements with the President’s tariff decision.  Extending the administration’s shake-up was the contentious firing of the Secretary of State, former Exxon-Mobil CEO Rex Tillerson.  Most recently, the Veterans Affairs Secretary, David Shulkin, was fired.  Other internal staff have recently left the White House under pressure.  Amidst the carnage, the President has tweeted that he’s “almost there” with his preferred lineup of Cabinet and other advisers.

 

 

  • A Bull Market Correction. The current volatility will likely remain present.  A more aggressive Fed, ever-present White House turmoil, and the tariff announcements have all played a role in eroding investor confidence.  Negative headlines surrounding Facebook and Amazon are providing fuel to drag down the entire tech complex.  However, strong earnings momentum (to be revealed beginning in a few weeks), corporate tax cuts, deregulation, and fiscal stimulus underpin our positive outlook.  We maintain our view that this pullback is a healthy correction within a bull market.  Risks to our outlook would arise from further negative trade developments or an unexpected pullback from the consumer.
Share:

Previous

Our Facebook Thoughts

Next

Market Currents - 5/30/18

Related Posts

Market Currents – 5/18/21
May 18, 2021
Market Currents – 5/18/21
No Comments
Market Currents – 4/14/21
April 14, 2021
Market Currents – 4/14/21
9 Comments
Market Currents – 11/11/19
November 11, 2019
Market Currents – 11/11/19
No Comments

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • What Is Your Cash Doing For You?
  • Market Currents – 2/7/23
  • Market Currents – 1/12/23

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • What Is Your Cash Doing For You? March 7, 2023
  • Market Currents – 2/7/23 February 7, 2023
  • Market Currents – 1/12/23 January 12, 2023
  • Strategizing For 2023 January 6, 2023

Login To Your Schwab Account

Copyright © 2023 Ascent Wealth Partners. All Rights Reserved.