For all the fire and fury, what actually happened this financial week?
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!
Wondering how this affects your investments? Schedule a call with Michelle and Steve to discuss your portfolio today.