What’s up family? We’re back. There are some important political goings on that may affect our strategic outlook. Let’s discuss…
$1 The Fed’s minutes suggest a hawkish view from the Fed presidents. In lay, much conversation was held over concern that markets are overheated. If this is the case, we can expect accelerated rate hike schedules, likely to harm markets significantly in the near term. Speaker Ryan also made comments dampening hopes of a quick tax reform process, harming today’s momentum as well.
$2 Bashar Al-Assad, the Syrian President, is accused of using chemical weapons on two separate occasions in the past week. This may draw the U.S. and Russia further into the civil war conflict in Syria, as stated by President Trump. A prolonged war would have effects on markets across the world. Steve Bannon, coincidentally, lost his spot on the National Security Council today (hallelu!).
$3 Last week UK Prime Minister Teresa May officially filed Article 50 paperwork with the European Union (EU), starting the 2-year process for the UK’s official exit from the EU. That news, combined with the highlights above, the terror attack in London, the terror attack in Russia, and North Korea’s continued provocations show that portfolios are at heightened headline risk now. Don’t let these happenings spook you from good purchases, but also be sure to pay attention to regional risks in your portfolio.
A bit more dense this time but we had a lot to cover! Drop me a line if you want to discuss headline risk in greater depth.