“In investing, the person who turns over the most rocks wins the game.”
-Gautam Baid
Here’s what you need to know this week:
- Stocks fall on renewed tariff fears
- Negotiations continue on tariffs and the government shutdown
Upcoming Event
Before we dive into this week’s newsletter I’d like to highlight an upcoming event hosted by our own Brett Valentine focused on protecting and growing your wealth for retirement. This event will be hosted at Hefner Grill on Monday, October 28th from 6:00 – 7:30 PM and includes a complimentary dinner. Click the link below to register for the event:
Here We Go Again
Stocks fell precipitously on Friday after President Trump announced a new suite of tariffs on China. Markets actually reached new all-time highs on Thursday prior to the tariff announcement. Trump’s newest plan will place 100% tariffs on Chinese imports beginning on November 1st, barring any negotiations[1].
President Trump announced these tariffs due to new restrictions China placed on exporting rare earth minerals. Investors clearly did not like this escalation in trade tensions and the resulting selloff led to the worst market day since April 8th. The lack of economic data due to the government shutdown has only heightened focus on the trade war, and these new moves threaten to shake up a market that has enjoyed peaceful gains for the last few months.
Negotiation Week
Stocks rebounded this week after President Trump signaled a willingness to barter with China. Trump and Chinese President Xi Jinping are scheduled to meet in person in South Korea later this month, and this week’s market moves indicate that investors expect substantial progress to be made at this meeting. Additionally, Treasury Secretary Scott Bessent will meet again with Chinese Vice Premier of Trade He Lifeng to iron out more trade details[2].
All of this is happening against the backdrop of the government shutdown which is now entering its third week. Flight delays have increased across the country due to air traffic controller staffing shortages and thousands of government employees are working without pay. President Trump announced a plan to pay US military paychecks this week despite the shutdown, and has also threatened mass layoffs at government agencies.
So far markets still seem relatively unconcerned with the shutdown. While the shutdown does place more focus on trade negotiations, it seems the majority of investors still expect an easy resolution. For now it seems more market gains hinge on an orderly resolution to the trade dispute as well.
What Else
- Israel and Hamas have exchanged hostages as part of their ceasefire agreement
- President Trump delivered a speech to world leaders in Egypt after visiting Israel to attend the signing of the ceasefire agreement
- Ukraine has carried out multiple airstrikes in western Russia, hampering Russian oil refineries
- A munitions factory exploded in Tennessee on Saturday, killing 16 employees
- Legendary actress Diane Keaton passed away at the age of 79
- The price of gold & silver continue to chart new highs
What We’re Reading
Two green comets nicknamed “Lemmon” and “SWAN” will pass by Earth in the coming days. Both can be seen using binoculars or a telescope, and Lemmon will briefly be visible to the naked eye when it reaches its closest point to Earth on October 21st. Click below to learn more about our celestial visitors:
What’s Happening Downtown
The Leukemia and Lymphoma Society is hosting Light the Night at Scissortail Park this Friday, October 17th. This event runs from 5:30-8:30 PM and is meant to celebrate, honor and remember those touched by blood cancers. Click below to learn more:
To read more from our blog, click here
Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, CFP®, Brandon Ingerson, Bill Daniel, Sam Postich, Jenni Hess