Monthly Economic Update: September 2019

Transcript:

Hello, folks, this is Derek Merkler, the Military Financial Advisor with my economic update for September 2019.

In August, all eyes were on the U.S.-China trade dispute. The White House announced new tariffs on Chinese goods. Some are effective now; some will be effective in December. China retaliated, in two ways. First, it manipulated its currency by reducing its value compared to the U.S. dollar. Currency devaluation makes Chinese goods less expensive for U.S. buyers and it may help offset the impact of tariffs.[1]Second, it scheduled new tariffs on American goods.[2]Trade talks between the U.S. and China may resume this month though, of course, time will tell.[3]

Last month, the S&P 500 lost 1.8 percent.[4]The Dow Jones Industrial Average fell 1.7 percent.[5]The Nasdaq Composite was down 2.6 percent.[6]  

On Main Street, consumer spending was strong. So was consumer confidence. Core retail sales were up one percent in July. Personal spending was up sixth-tenths of a percent.[7]According to the Conference Board, households thought the current economic situation was the best it’s been in 19 years. [8]

Also, bond prices rose in August for a myriad of reasons and bond yields fell as a result. When July ended, the 10-year Treasury was yielding 2 percent. When August ended, the yield was 1.5 percent.[9]

Right now, Wall Street is focused on trade. But it may also respond to the August jobs report as well as the Fed’s next meeting, which wraps up on the 18th. Investors are eager to see what the Fed has to say about U.S. monetary policy.

That’s it for this month’s educational economic update.

Thanks for watching.  I’ll be back with another economic update at the beginning of October. Until next time!

Credits:

 Thanks for watching!

Please visit my website at:

MilitaryFA.PXAdvisor.com

Remember, the topics discussed in this video are for informational purposes only and that past results do not guarantee future performance.  If you would like to discuss your financial situation, please email me at Derek.Merkler@Parsonex.com. 

Advisory services offered through Parsonex Advisory Services, Inc., 8310 S.Valley Hwy, Suite 110, Englewood, CO 80112. 303-662-8700.


[1]https://markets.businessinsider.com/news/stocks/7-yuan-per-dollar-level-significance-us-china-currency-war-2019-8-1028434288

[2] https://www.piie.com/blogs/trade-investment-policy-watch/trump-trade-war-china-date-guide

[3]https://www.marketwatch.com/story/dow-futures-up-over-250-points-as-china-tamps-down-fears-of-further-trade-war-escalation-2019-08-29

[4]https://money.cnn.com/data/markets/sandp/

[5]https://money.cnn.com/data/markets/dow/

[6]https://money.cnn.com/data/markets/nasdaq/

[7]https://www.investing.com/economic-calendar/

[8]https://www.cnbc.com/2019/08/27/us-consumer-confidence-august-2019-index-dips.html

[9]https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll

 

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