• Home
  • Services
    • Our Process
    • Social Security Planning
    • Retirement Planning
    • Investment Philosophy
    • Risk Management
  • About Us
    • Our Commitment
    • Meeting Location
    • Disclosure
  • Profiles
  • Resources
    • Books of Interest
    • Investment Updates
    • Planning Briefs
    • Financial Calculators
    • Market Data Bank
    • Web Resources
  • Clients
  • Contact Us
    • Tell A Friend
    • Privacy Policy

Planning Briefs

Key Tariffs, Rates And Economic Facts To Note In Fearful Times

Published Tuesday, December 18, 2018 at: 7:00 AM EST

  • Print
  • Email

Tariffs, interest rates, and recession struck fear deep in the heart of investors as 2019 was beginning. A market crash, a world financial crisis, or something worse. Here are some facts to help you keep perspective in these fearful times.

Assuming a trade war with China, JP Morgan earlier this year concluded it would result in a $125 billion tariff on $500 billion worth of imports on Chinese goods, but shave U.S. economic growth in 2019 by just one-tenth of 1%, according to an October 8, 2018 by Bob Davis, a senior editor at The Wall Street Journal.

Frightening headlines about Fed monetary policy have widely reported that, with the yield curve inverted, a recession is on the horizon. Actually, what the yield curve central bankers care about most — the one used to predict a recession — has not inverted. The financial press often mistakenly reports on the two-year versus 10-year Treasury bond when the yield curve that's most relevant in forecasting recessions is the 90-day Treasury.

No one can predict the next market turn and past performance is not a guarantee of the future of your investments. However, key economic fundamentals, like monthly orders by purchasing managers at large companies, were near a record high in November; real wage gains, which have repeatedly broken record high for three years, according to the Bureau of Labor Statistics, grew in the 12 months through October by 1.1%. These are not signs of a recession.

This article was written by a professional financial journalist for Jones Financial Consulting, LLC and is not intended as legal or investment advice.

© 2022 Advisor Products Inc. All Rights Reserved.

More articles

  • High Income Earners & Roth Conversion
  • Time Itemized Deductions To Reduce Taxes
  • The Big New Tax Break For Pre-Retired Professionals
  • Sidestepping New Limits On Charitable Donations
  • The Truth About U.S. GDP Growth
  • Another Member Of Music Royalty Dies With No Will
  • Paying Off A Mortgage And The New Tax Code
  • Key Facts On Deducting Medical Expenses
  • Reduce Your Widow's Tax Bill Materially Annually
  • Ten Things About 10-Year U.S. Stock Market Performance
  • Qualifying For The New Business Owner Tax Break
  • Your Alma Mater Or Your Family?
  • This Is Not Your Parents' Interest Rate Cycle
  • If Family Is Wealth, Then Planning Is Immortality
  • Life Is Fragile, So, Please, Value Each Day As Priceless

More

Articles & Information

  • Books of Interest
  • Investment Updates
  • Planning Briefs
  • Financial Calculators
  • Market Data Bank
  • Web Resources

Navigation Links

  • Home
  • Services
  • About Us
  • Profiles
  • Resources
  • Clients
  • Contact Us

Enewsletter Sign Up


General Interest

Contact Us

Jones Financial Consulting, LLC
PO Box 1608
Eau Claire, WI 54702-1608
Phone: 715-577-2778
Fax: 888-226-9621
Email: al@jonesfinancialconsulting.com

  • Disclosure
  • Privacy Policy

© 2022 Jones Financial Consulting, LLC | PO Box 1608, Eau Claire, WI 54702-1608 | All rights reserved

© 2022 Jones Financial Consulting LLC. All Rights Reserved.