Market Volatility FAQs

In recent weeks, headings about tariffs in between the U.S., China, Canada, and Mexico– and the marketplace volatility they have actually activated– have actually controlled the news cycle. The specifics change daily, often hourly, which has actually developed a fluid and quickly evolving economic and market environment. It is not a surprise that given these and other threats to U.S. and international financial health, stock and bond markets are experiencing huge moves. Numerous investors are stressing that the tariffs and resulting trade disputes might trigger U.S. development to slow, and inflation to increase. While in 2015's market moves were dominated by speculation about the pace of Fed interest rate cuts, we are seeing signs of much deeper issue about the macroeconomic outlook. Remember that markets do not like uncertainty, however the US economy is still growing steadily, and the overall job market has actually not materially intensified. Nevertheless, additional volatility is now something we expect.

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