Over the weekend, the news hit the press of the “Ceasefire” in the US – China trade war. Stocks opened up 2.5% or so yesterday morning. As of this writing, Tuesday afternoon, the stock markets have already given all of those gains back.
Now, we must wait to see if the lift from the Fed’s statements last week that we are “close to neutral” on interest rates is lost as well.
Three things are reassuring for our clients:
- US Treasuries are rallying,
- Gold is rallying, and
- We are holding more than 50% cash.