The markets had another knee-jerk reaction to President Trump's rhetoric. A pattern has formed here and investors should know this by now. When President Trump makes an extreme remark, it is typically on the extreme end of one spectrum. He then softens a bit and gets to a point where both parties tend to settle happily. Wall Street began to nosedive as soon as Trump mentioned tariffs on steel and aluminum. We were pretty confident that this would just blow over and when traders come to their senses, we would resume the bull market. It played out exactly how we forecasted. We've recovered half of the losses since the slide last week and should make up the rest of it soon. It usually takes longer to make gains that it does to sell in fear. The VIX is below 18 again, which is elevated but nothing like we saw in recent weeks. Calm is returning but we will still see some skittishness in the markets for a bit longer.
Copyright © 2007-2018 10PercentPerMonth All rights reserved.