Quick Thoughts On The Stock Market Impact Of The Trade War

according to Trump may be riveted on the stock market, and think that swings in Chinese equity prices drive politicians there. [Wonks will recognize that a net increase in Treasury purchases by non-residents must necessarily be matched by a net increase in the trade deficit.] Yes, tariffs can (and will) affect goods while they're in transit, so the price impact will be felt more quickly than changes in quantity. But the impact will consist on small increases in the prices of a large number of goods. Consumers may not connect the dots between trade policy and why they're having such a hard time making ends meet.

How to Prepare for a Stock Market Surprise

The second quarter wasn't spectacular for stocks in the United States, but it produced solid returns with relatively little volatility. Stocks elsewhere around the world didn't fare quite as well and the bond market gave up ground, but for the most part, investors had some very welcome breathing room. Still, it's a good bet that difficult times will return to financial markets at some point, so this may be good moment to prepare for a future shock. In our quarterly report on investing, we've analyzed one time-tested approach: the balanced fund. Our survey includes articles with reporting on where the markets have been and analysis that suggests where they may be heading.

Remember: The Stock Market Still Has Downside Tripwires

as mentioned in At this point three months ago, ���market correction" and "Dow Theory" were hot button topics. However, the stock market then began its volatile slog away from the precipice, and the meaning of "tariff" morphed from global nightmare to negotiation strategy. However, if the stock market continues to meander, the downside alarms will remain primed. Downside alarm #1: Dow TheoryBecause the Dow Theory was widely discussed and analyzed in April, it is at the top of the list. The Dow Theory still labels the stock market as being in an uptrend.

Intel's Stock Is Spiraling Right Into a Bear Market

The market continues to dump water all over Intel's (INTC) circuit-board. Shares of the chip maker opened below the key 200-day moving average on Monday amid fresh concerns on its leadership and competitive positioning. Intel saw a fresh bout of selling Monday following a rating downgrade from Barclays analyst Blayne Curtis to hold from buy. Read TheStreet's exclusive interview with AMD (AMD) CEO Lisa Su. Intel's stock isn't working.

Three Metrics Of Stock Market Overvaluation

The other thing investors need to do, in an era of historically rich stock prices, is to think about what they might do if and when a crash arrives. To get a Cape for the current market, I took at face value the analyst forecasts for S&P earnings through June 2019. Some of this explosion in stock prices is justified. The stock market is stretched. I repeat my caution that we cannot know in advance the timing of a correction, or be sure that stock prices will resume ratios that are in line with historical averages.

collected by :Molly Tony