On Again Off Again Investing
You know that recession debate investors have been having for the last two years? You can thank the trade war for that. For a brief, fleeting moment, investors thought it was all over. They celebrated too soon.
For decades it was just a face-off between the two largest economies in the world, but now the US and China are going hammer and tongs completely over trade. One country batters the other with border taxes on incoming goods, and then the other does the same. The first economy to collapse loses and has to forfeit longer-term trade benefits to the other. Game on!
Yesterday, the market got very excited by rumors of a temporary trade truce. According to the “experts,” President Xi was making a big order for US agricultural products, and the US President wanted to reward him with some light tariff relief. Jokes on us, the White House swiftly pushed back on all that!
So, man the barricades, because this could still go either way! The conflict has divided markets, with ‘risk-off’ gold bugs darting for the shiny metal safe haven, and ‘risk-on’ troopers sticking with stocks. Are you stuck in the middle? Consider this…
If you started tracking the stock market on the precipice of its meltdown in 2008, you might have kicked yourself at the time. As it happens, you’d have doubled your money by now. “Time in the market beats timing the market.” It’s been quoted to death, but it’s true. Just invest! The world will keep getting better as folks become more educated, live longer, and progress along the technology curve.