Once again tariffs and trade wars dominated the headlines. This week, the trade war between the United States and China escalated with the imposition of additional tariffs on more than $260 billion of goods.
The domestic equity markets have shrugged off trade concerns as the U.S. economy enjoys the fiscal stimulus of the tax cuts paired with low unemployment numbers.
Trade wars come with heightened uncertainty and risk, which is why it is important to have a properly diversified and well-balanced portfolio. Investors typically focus on their long-term financial goals and resist the temptation of making changes to their portfolio based on headline news alone as economic fundamentals don’t change overnight.