Tuesday, May 07, 2019

On tariffs, Trump seems to be taking chances with retiree portfolios and getting away with it


Trump got away with it yesterday.   He announced probable large increases in tariffs to happen this Friday because he suddenly decided China was acting in bad faith on the trade deal.  Maybe something happens tomorrow.  The Dow-30 dropped over 471 points at opening and recovered to just a 66 point drop (CNN).  I still recall a pep talk at my job (ING-Reliastar) in Aug. 2001 (before 9/11) where a professional speaker predicted a 35000 Dow within one year of that time. 

Trump also may have nudged interest rates down?

Retirees are watching their portfolios, wondering when is a good time to convert more securities back to cash.  Be careful about bonds that mature and are tied to the SP.


In the meantime, the left wing rhetoric is blaming baby boomer seniors more. Young adults, except for the top 20% or so who are the most talented, can’t seem to hold their own when they leave home.  You can tell from what young adults say about themselves on YouTube, Facebook and Instagram why some are doing so much better than the pack.

Retirees with assets have to wonder about backlashes and means testing, as it will surely come up in the new House and after 2020.

One problem is that so many “second careers” turned out to be about “selling stuff” and joining pyramids.
 
Update: later today

I spoke too early.  The Dow closed down 473 today.  It seems the fear of China came back. 

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