Posted By RichC on May 24, 2019
The political tension around the globe, along with the trade battle between the United States and China, have put a damper on what was a relatively good economy here in the U.S. Add to those challenging international negotiations, the deepening divide between many Democrats still seeking to impeach President Trump in control of Congress are furthering their investigation into Trump’s finances, has added to investor’s concern.
On Thursday, the stock market took a big hit as money shifted from equities to fixed income and U.S. Treasuries. The oil market also took note as the sentiment shifted from a continued stronger world demand for oil to the possibility of a slowdown. The price of crude moved lower than the recent $60+/barrel number to $57+ as inventories build and oil traders question the recent economically positive news that pushed oil higher.
For traders … perhaps the volatility offers a chance to make money by trading… but for long term investors, the heavy selling on Thursday based on political wrangling and public animus is painful to watch.
My advice, if you are saving for retirement and have a longer time horizon, just don’t open your account statement this month.