• C Garrett Moore, ChFC®

The Trade War Rages On

Updated: Apr 4, 2020

What happened?

Last night, China’s central bank allowed their currency, the Yuan, to fall in value compared to the U.S. Dollar.

Why did they do that?

Because you can now buy the same amount of Chinese goods with relatively fewer U.S. Dollars, which partly negates the tariffs we just imposed on them. This move is supportive of their own economy.

What's the result?

When China did the same thing on August 24, 2015, it resulted in a 3.5% drop in the U.S. stock market (S&P 500) the same day. That’s almost identical to what we saw today. It's worth noting that the S&P 500 has produced a total return of approximately 44% since then.

What seems like a crisis today will almost invariably look like a buying opportunity in retrospect.

What should I do?

Potentially the smartest thing: buy stocks.

The reasonable thing: nothing.

Probably the worst thing: sell stocks.

Be cognizant of your Animal Spirits, but do your best to not act on them. Patience and prudence are almost always rewarded.

Want to talk about it?

Call me on my cell: 941.544.2269.

Text me: 941.877.6011.

With gratitude,

C Garrett Moore, RFC®

43 views0 comments

Recent Posts

See All

Sir John Templeton, one of the most successful investors of our time, once said, ““The four most expensive words in the English language are, ‘This time it’s different.'” What he meant was that if you

Talking about money and investing at this time feels callous, but you also deserve my two cents. So while this is saddening, to say the least, I want to acknowledge that it’s also downright scary as a