For all the fire and fury, what actually happened this financial week?
by Financial Design Studio, Inc. / August 8, 2019
If you were gone for the financial week on vacation, you might look at the S&P 500 and think that it was a quiet week in the market. The index is pretty much exactly where it was on Friday August 2. But did you know that the Dow Industrials were down over 750 points on Monday? What happened?
Monday’s downdraft was due to China allowing their currency to depreciate against the U.S. Dollar. China controls their currency, and their move was seen as an escalation of the simmering U.S.-China trade dispute. As it turns out, China backed off and allowed their currency to return to more normal levels.
This week’s action is a classic example of why it’s not a good idea to watch the market tick-by-tick. It’s always moving up and down – sometimes a lot. By keeping a long-term focus, you’ll avoid having your emotions whipped around by a stock market index!
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Financial Design Studio, Inc.
We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.