Bill Tracy, United States, President Trump discussed on Purity Products
Financial planner professional Andy, Smith in just. A few moments Andy Smith will die deep into, this week's, portfolio review I it's great to welcome Bill Tracy. Back to. The show, villas? A senior investment analyst in the Financial Engines research center yeah and first of all he's super smart what's nice. About talking to Bill is that he he's smart. But, he can talk about things in a way that's approachable that's understandable right, and he's got these cool charts. That you can that you can use to help visualize what he's talking about we post all those charts to investingsense.com head? There now as we started with Bill among all of, the credentials that Bill has he's also a CFA charter holder And that makes him a kind of an expert. And, the economy markets and investments so built where we'd like to start our conversation is with a topic that we've been. Talking. A lot here on, the show and. It has been making headlines and that is the, trade war, with China what's your latest update their things Bobby. No certainly. The story, is? Not going away anytime soon fund managers continue to see this trade war between the US and China has the. Biggest tail risk for markets and each week we. Seem, to add another twist to the saga so we had kind of two, new issues pop up this week On on one front we had auto tariffs You. Know the US imports More than two hundred billion in cars and another one hundred fifty. Billion in auto parts annually so any tariffs on in the auto industry. Could have a substantial impact and then, later later in the week we got the news again from, President Trump and he's okay putting tariffs on all five hundred plus billion in goods. That are imported from China so we continue to see these. Threats pop up right now we've just got that I thirty four billion or so and terrorists. That have actually, been implemented but, you know as we've learned hopefully I've learned by now that the anything that we hear from President Trump on on trade is not just an empty threat that should, be? That should, be dismissed right so we we follow him uperior who's the head of US policy? Research over at cornerstone. Macro he's, been pretty consistent you know in his take that any trade talk from Trump is going to. Be should, be taken seriously Are we seeing any market reaction to the trade war when you get to a. More granular even sector specific level yeah so we're looking at the s.. P. five hundred kind of taking it, down like you said to the sector level we've got industrials, one of the weakest sectors since early April early April is really kind of when. The ball got rolling on this whole escalating trade talk I. Think it was and you had the US trade reps releasing that first list of proposed tariffs. On China so, the industrial sector, you can break it down into three further groups you've got the capital goods professional services and transportation we've seen those capital goods group a lot of machinery companies actually, in? Particular that, have have lagged the most so Bill we we spend a lot of our conversation. Focused on the equity. Markets and that's important but let's switch to fixed income what's going on there what do you see there Now thinking back. About our previous conversations? Do tend to overlook bonds I'm a big live music fan you know, at summer concert season, so if. Equities are a Jimmy Buffett concert a bunch of drunk parrot heads, I know I. Know you're. Out there Bob, every, summer medically speaking, big buffet. Fan all right so you know he's he's the guy, the? Equity. So bonds probably, more like an evening at the. Symphony right nothing nothing too exciting but still a lot of substance so. We're looking at what's, working in in the bond..