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Richard E. Deam, CFP®, CWS®

Deamoaks Fall Newsletter 2019

STOCKS AND STORMS

Fall is here and there are signs that the weather is changing.  The leaves are turning and falling, the wind is blowing and the temperatures are dropping.  Along with the seasonal changes, we have had some frightening and destructive economic storms!

I am not a weather observer, but I am a market observer.  Stocks and bonds have their own seasonal changes.  At times, the marketplace is sunny only to be followed by financial storms.  These storms can be very destructive….even more so than tornados.

You may wonder what causes financial storms.  Several culprits can be named.

Here are the top three in my opinion –

#1-  Tariffs. These are the most serious of the culprits. Trade Wars are not easilysolved – they can become like a contagious virus. France’s finance minister said Europe is ready to impose retaliatory tariffs on American goods in 2020.This is a result of a long running dispute over subsidies to plane makers Airbus and Boeing. The World Trade Organization has now authorized the U.S. to levy $7.5 Billion in tariffs against France.  China, Mexico and now France?  What’s next? Tariffs are more unpredictable and dangerous than disruptive technology!      

#2 - Our National Debt.  We owe the Chinese Government billions of dollars. It is interesting that we can provide subsidies to our farmers because China is loaning us the money to do so.  And many of our farmers are still going bankrupt.

#3 - Fear of Impeachment.  The potential for disruption is a real concern.  It could have a strong negative effect on the stock market.  We are already seeing this in the variability/volatility  (pick one) of the markets from day to day as the news unfolds.

Deamoak’s Planning Services has a strategy to protect our clients from these financial storms.  Please call us so that we can help you protect your assets.

Best Regards,
Richard E Deam

*1 –New York Times   09-20-2019 & 10-02-2019

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