The Trade War saga continues. Markets are turbulent this week as China reneges on previous negotiation terms and Trump fires off feisty tweets
How to handle the volatility?
- Watch the moving averages.
a. S&P500 is about 1.5% away from breaking its 50 day moving average (dma). The fair value level is around its 100 or 200dma at a range of 2725-2845. That’s probably a good entry point.
b. I continue to believe that Emerging Markets offer more upside, and volatility is hitting them harder. EM has already broken its 50dma and is only about 1% above its 100/200dma.
c. For an easy way to track moving averages, please watch my YouTube video on the subject. Yahoo Finance has changed their chart formatting since I recorded the video, but the basics still apply: https://www.youtube.com/watch?v=tgWctQ8jfKU&t=613s
- The best advice I can give is: RELAX ! That’s exactly what I’m doing. Speaking of relaxing, I’ll be visiting friends in Flagstaff AZ on June 7-8 2019. They’ve graciously agreed to make it a Wealthsteading Meetup. So if you’ve ever wanted to spend some quality time with me, away from the crowds, this is your opportunity. Contact me for details.
Final thought: this dip in the market doesn’t mean things can’t go lower, invest with caution.
The Robots are Coming: A Human’s Survival Guide to Profiting in the Age of Automation available at AMAZON and all fine bookstores.
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