Markets and Economic Update for August 2019

David Lundgren, CFA, August 15, 2019

Welcome to the Markets and Economic Update, provided by the Hancock Whitney Asset Management team as an informational resource for clients and individuals who are interested in hearing our perspectives on current economic issues.

 

   Markets and Economic Update

 

We begin with a discussion of how President Trump's announcement of a 10% tariff on Chinese goods caused market volatility, which lead to an immediate retaliation from China that caused even more market havoc.

 

Trump stunned China and went against his advisors by announcing his intention to place a new 10% tariff on all remaining Chinese goods, says Richard Chauvin, CFA. Although China cannot match U.S. tariffs dollar-for-dollar, they can devalue their currency, increase their own tariff rate, and restrict access to goods which are difficult to source elsewhere, such as rare earth elements.  

 

Paul Teten, CFA discusses how global growth is slowing as result of trade frictions, and while the U.S. economy has slowed from last year’s firm pace, it remains healthy, fully-employed and growing at a modest rate.

 

Martin Sirera, CFA recommends caution for the near to immediate future due to increased volatility as trade wars and global growth concerns have equity investors feeling uneasy.

 

Eric Reynolds explains how the market tolerated a 25 basis point reduction from the Fed as the S&P 500 continues to perform at a high level in the U.S.

 

Click the "play" arrow below to listen to the recorded session and learn more:   

 
 
 
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