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Redrick Terry: It is now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. David, welcome back.
David Nelson: Thanks, Redrick. I appreciate it.
Redrick Terry: Of course. Uh, we’re talking about the trade tensions this week between the US and other countries, China in particular. Those headlines have dominated the news lately. So, what should people be aware of, in terms of their investments?
David Nelson: So, uh, this a big issue. Um, I brought along a slide here that I, I think will help individuals, as far as maybe comprehend, visually see as far as what’s taking place and the impact that it’s having, as far as in, in recent times. So, the, the top one is looking at trade and trade on a, on a, on a global basis, and this is all in dollar terms, which again is pretty logical, as far as for what we’re talking about here.
But what we find, I guess I wanted to highlight as far as this blue area here, the dark blue area, is that we had a really nice trend line as far as moving up during this particular period of time. Subsequently, the stock market responded in, and did quite well during that particular period.
Now, we get to the tail end of 17, early 18. What we find is that the, uh, the index, the trade that’s taking place as far as globally, has flattened out and actually, towards the end here, we’re seeing a, uh, pretty significant drop off.
So, that’s the top. This is not good news. If this trend continues, this is not good as far as for stocks. On the bottom, what we look at is, this is a leading index composite. And this composite is trying to give us a heads up as far as what tomorrows are going to look like.
And what tomorrows are looking like, again, since 18, going into 19, is not the trend that we want to see. If this continues, this is not going to be good as far as for stocks. We’ve seen volatility pick up as far as the United States, but certainly we’ve seen it as far as o- overseas.
The Chinese market has come off its high by a pretty good percentage and again, at the end of the day, what we want to see is peace and harmony, not a political statement by any means. I don’t know if it’s right or wrong what we’re doing, but what I do know, is, it’s impacting people’s net worth statement short term and we want to be very concerned about that.
Redrick Terry: Yep, absolutely. David, thanks so much for [crosstalk].
David Nelson: Thanks, Redrick.
Redrick Terry: We appreciate it. And if you missed any part of this discussion, we’ll have it available for you on our website. That’s ourquadcities.com.
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