Ep. 79 - Why Is Tech Swooning

Market Chat

Anyone hoping for a quiet week was disappointed. The market suffered a 3.5% two-day loss before recovering on Wednesday. For most investors, this year has not left much to be thankful for. Nearly all asset classes we know have weakened: gold, commodities, large cap, international, emerging, credit and event Treasuries. The S&P 500 is up for the year but by the thinnest of margins. There were no new problems last week nor were there any resolutions to the problems. We'll restate these because they're important and none really lend themselves to quick fixes: China trade: all eyes on the G20. So far, no breakthrough Peak earnings: companies may face higher wage bills or just decide not to expand Economic slowdown: this week it was lower industrial production and soft, but not deteriorating, numbers in housing. Fed rate hikes: no hint that the Fed is concerned about the weaker economy and will let up on rates This week also saw another indicator that the Kabuki theatricals on trade are hitting home. Here’s a story about farm produce rotting because of collapsing Chinese demand. And here’s a chart showing declining Chinese import of manufacturing components and the decline of U.S. durable goods orders. If you want to join us live next time or get future updates about new episodes, subscribe to our email newsletter: www.bandjadvisors.com/subscribe Did you like this podcast? Be sure to rate and review us on Apple Podcasts: bandjadvisors.com/itunes Ask us your financial questions in your review and we'll answer them in the next episode. We appreciate your feedback! Learn more about Brouwer & Janachowski and our wealth management services: www.bandjadvisors.com