G20 Meeting Looms – June 26, 2019

The G20 meeting includes 19 nations plus the European Union. In focus, a meeting between President Trump and China’s President Xi regarding trade.

Investors aren’t expecting a trade deal at the G20 meeting this weekend. A reduction in U.S. tariffs on Chinese goods is probably too much to ask for.

What outcome are investors seeking? Absent the unlikely prospect of an agreement, or significant progress towards a deal—

• The assurance the two sides will continue to talk,
• A truce – no more ratcheting up of trade frictions; no new tariffs on Chinese goods, and
• Friendly photos of Trump and Xi.

Any encouraging tweets from Trump, as we saw last week, would be welcome.

Investor’s corner

Headlines can always move markets over a short period. And, as today’s headlines fade, tomorrow’s headlines surface.

Renewed acrimony would likely create new volatility as July begins.

Ultimately, for long-term investors, economic growth that supports profit growth creates a tailwind for stocks and supports well-diversified portfolios.

If you have a well-diversified, holistic financial plan that has you on the path towards your financial goals, congratulations. You have chosen the narrow, less-traveled path.

Created 2019-06-26 14:34:38