Many think that keeping a close eye on personal finances, investing in a 401(k) account, saving income when possible and being generally thrifty is enough to ensure a secure future. As the poem goes, no man is an island and the world around you is going to impact your financial future. Stock market rallies and falls, geopolitical events, decisions by central banks and more are all going to have a hand in your investment account balances. What signs should you learn to recognize? Who can you turn to in times of insecurity? These questions and more are exactly what Thomas Batterman at Financial Fiduciaries LLC can help investors answer. Recent talk of an international “trade war” between the U.S. and China will have ramifications for investors and Thomas Batterman is here to break it down.
According to a June 19, 2018 article from USA Today, any major company whose products are affected by tariffs imposed during a trade dispute is going to suffer. “The big risk to stock investors is if the trade dispute causes the confidence of CEOs and investors to decline,” the newspaper states. “Why would that happen? If the economy’s growth takes a hit, it means fewer profits for companies that sell goods, including smartphones, strawberries and electric cars.” At the moment, the current administration in the White House has proposed $200 billion in tariffs on Chinese goods that include products related to manufacturing and “industrially significant technologies,” per the newspaper. The purpose of the tariffs? In short, the U.S. wants a level playing field and hopes that negotiations will follow this tough talk.
Thomas Batterman of Financial Fiduciaries LLC says that this recent geopolitical event is a perfect example of why people looking to establish a secure fiscal future need to pay attention to the world at large. If you have invested money in the stock of a certain company – say, one that exports lots of goods overseas – then a trade war is going to affect stock value as this company’s profit dips. A company with decreased value isn’t one that looks particularly enticing to other investors so those with money already in the market are forced to watch the value of their investments shrink. Some will opt get out entirely and be forced to watch as years of effort are erased. Worse yet, mere talk of a trade war can trigger mass concern among other investors who could set off a reaction of occasionally unwarranted stock sales. By working with Financial Fiduciaries LLC and Thomas Batterman, you’ll have the legally and ethically-bound advice of a fiduciary on your side. The end result here is knowing how to weather the economic storm while factors outside of your control play out.