What is causing all the stir?

January 8, 2016

China!

For some reason the world must not have anything else to worry about than the unreliable measures of Chinese manufacturing or the halt to the Chinese market a mere thirty minutes after opening which seems to be causing all the commotion. But, last we checked the US economy is humming right along at a sustainable rate as was reinforced by the fed’s move on raising interest rates in December. And, things are improving in Europe although not as quickly as here in the US. As was written by Rick Newman in Yahoo Finance recently, “It takes an iron stomach to buy stocks when markets are falling, of course, but it’s easier to take a look around, assess whether your local economy seems imperiled, and if it’s not, relax. Markets don’t always reflect real economic performance, but they do experiment with rationality now and then”.

Also, the lingering effects of the oil rout have had a negative impact on most investor’s portfolios over the past year and one-half. The Saudi’s are maintaining oil production at high levels (which is forming a glut of oil) to try to put the US out of the business producing oil and natural gas here at home! But, the US is still producing and will continue to do so! The Saudi’s are threatening their own economy and vast wealth by the antics. But, for now, they have their heals dug in. When they reduce production, we will likely see a recovery! But, much patience is needed in the meantime.

Any questions about any of these issues or your investments, please don’t hesitate to call us.