Trump

Asset Allocation + Trade Wars? Here's What You Should Be Doing

Okay, here's the scenario for Andrew from Louisville, our caller in the first two segments this weekend. Recently retired and now finding himself worrying about his asset allocation. What is the right mix when it comes to stocks and bonds? Is he being too aggressive? Or is he good to go and doesn't even know it? 

More emails to round out the first hour. We're making a little progress as we are now answering emails from June. That's the good news. The bad news is that July is just about over. Sigh...

Should you incorporate big picture, economic trends into your investment strategy? Or should you adhere to a “set it and forget” mindset?

The answer depends on your time horizon, according to our guest, Justin Nielsen, the Market Research Director at Investors Business Daily. You may recall that Justin was on the show last month with his colleague, Chris Gessel, discussing passive versus active investing, but today we have him to ourselves.

Whether it’s a trade war, inflation, tax policy or interest rates that moves markets, Justin says that if you are a long-term investor, any distinct event “is a blip." How much of a blip? Well check out this neat chart that he provided:

graphic 2.png

You can see that going back more than a century, there are long, 15 to 20 year cycles. Whether it's the Roaring 20s, Post World War II, 80s and 90s Dot com run-up, there are always times of down or sideways action…it’s just part of the longer cycle. That means that as uncertain and scary events occur, you need to remind yourself, that they are simply part of being an investor.

And for you geeks out there, we even talk about the YIELD CURVE, which is just a way to compare short-term interest rates (the federal-funds rate) and long-term interest rates (the 10-year U.S. Treasury bond). It also happens to be one of those weird market indicators that can presage recessions and stock bear markets.

You can go here for more information on Investor's Business Daily. 

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"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

Trade Wars? Here's What You Should Be Doing

Should you incorporate big picture, economic trends into your investment strategy? Or should you adhere to a “set it and forget” mindset?

The answer depends on your time horizon, according to our guest, Justin Nielsen, the Market Research Director at Investors Business Daily. You may recall that Justin was on the show last month with his colleague, Chris Gessel, discussing passive versus active investing, but today we have him to ourselves.

Whether it’s a trade war, inflation, tax policy or interest rates that moves markets, Justin says that if you are a long-term investor, any distinct event “is a blip." How much of a blip? Well check out this neat chart that he provided:

graphic 2.png

You can see that going back more than a century, there are long, 15 to 20 year cycles. Whether it's the Roaring 20s, Post World War II, 80s and 90s Dot com run-up, there are always times of down or sideways action…it’s just part of the longer cycle. That means that as uncertain and scary events occur, you need to remind yourself, that they are simply part of being an investor.

And for you geeks out there, we even talk about the YIELD CURVE, which is just a way to compare short-term interest rates (the federal-funds rate) and long-term interest rates (the 10-year U.S. Treasury bond). It also happens to be one of those weird market indicators that can presage recessions and stock bear markets.

You can go here for more information on Investor's Business Daily. 

Have a money question? Email me here.

Connect with me at these places for all my content:

https://twitter.com/jillonmoney

https://www.facebook.com/JillonMoney

https://www.instagram.com/jillonmoney/

https://www.linkedin.com/in/jillonmoney/ 

http://www.stitcher.com/podcast/jill-... 

https://apple.co/2pmVi50

"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

How Much do Tariffs Cost Consumers?

How Much do Tariffs Cost Consumers?

Five days after implementing tariffs on $34 billion worth of imported Chinese goods, the Trump administration released a list of an additional $200 billion worth of Chinese imports that will be subject to a 10 percent tariff. On the day of the announcement, stocks slid, but only by about a half of a percent. By the end of the week, it seemed like investors had forgotten about the announcement and instead were focusing on corporate earnings and the strength of the economy.

CBS Evening News: How New Tariffs Could Hurt Consumers

The Trump administration is preparing tariffs on another $200 billion in Chinese imports. The latest round could impact the price of everything from seafood to shampoo. I explain what that means for consumers on the CBS Evening News.

Have a money question? Email me here.

New $200B Trump Tariffs: Stay Cool with Your Investments

New $200B Trump Tariffs: Stay Cool with Your Investments

Many parts of the country recently experienced a heat wave and with extreme temperatures, come the usual warnings: keep your pets indoors, don’t overdo physical activity and hydrate often. It just so happens, that the heat wave coincided with the implementation of U.S. and Chinese tariffs, which prompted some tea-leaf readers to come to a boil on the markets and exclaim “SELL EVERYTHING!” Before you take any action that would pre-empt your game plan, here’s a handy summertime hint: stay cool with your investments!

What The Great Economists Would Do with Linda Yueh

It’s pretty rare that I have a legit economist on the show. It’s even rarer when said legit economist is a woman -- WOOT!

On this episode we check both those boxes with Linda Yueh, an economist who holds senior academic positions at Oxford University, London Business School, and the London School of Economics and Political Science.

Linda joined us to discuss her latest book, What Would the Great Economists Do?: How Twelve Brilliant Minds Would Solve Today's Biggest Problems.

Since the days of Adam Smith, economists have grappled with a series of familiar problems – but often their ideas are hard to digest, even before we try to apply them to today's issues. In her latest book, Linda explains the key thoughts of history's greatest economists, how our lives have been influenced by their ideas and how they could help us with the policy challenges that we face today.

In the light of the post-Great Recession economy, where growth has not accelerated as fast as in previous expansions, Yueh explores the thoughts of economists from Adam Smith and David Ricardo to contemporary academics Douglass North and Robert Solow.

Along the way, she asks, what do the ideas of Karl Marx tell us about the likely future for the Chinese economy? How do the ideas of John Maynard Keynes, who argued for government spending to create full employment, help us think about state intervention? And with globalization in trouble, what can we learn about handling Brexit and Trumpism?

Linda is also an accomplished journalist, who has spent time as an anchor/correspondent at the BBC and Bloomberg TV. With a strong social media presence, she’s worth a follow so you don’t miss any of her smart blog posts.

“Better Off” is sponsored by Betterment.

Have a money question? Email us here or call 855-411-JILL.

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Connect with me at these places for all my content:

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"Better Off" theme music is by Joel Goodman, www.joelgoodman.com.

U.S. China Trade Tensions Escalate

U.S. China Trade Tensions Escalate

U.S.-China trade tensions escalated, after the Trump Administration said that it would implement the previously announced 25 percent tariff on $50 billion of Chinese goods “that contain industrially significant technologies” – i.e., those that were highlighted in President Xi’s “Made in China 2025” project, which explicitly focuses on boosting China’s capabilities in sectors where the U.S. is currently a leader.

Trade Deficit Q&A

Trade Deficit Q&A

After the U.S. imposed previously announced tariffs (25 percent on steel and 10 percent on aluminum) on the European Union, Canada and Mexico last month, a number of you wrote me asking to explain the bottom line when it comes to trade deficits. I know that the rhetoric around trade has been tough to absorb, so here’s my attempt to provide a “Trade Deficit Q&A."

Strong Jobs Trump Tariffs

Strong Jobs Trump Tariffs

At 12:01am Friday morning, the U.S. imposed previously announced tariffs on the European Union, Canada and Mexico. When the plan was unveiled back in March, the three regions were given a reprieve. The hope was that during a cooling off period, the U.S. would be able to convince the three to restrict metal shipments, as it had been able to do with South Korea, Brazil, Australia and Argentina.

CBS This Morning: The Impact of U.S. Tariffs on Steel and Aluminum Imports

Mexico, Canada and the European Union are vowing to retaliate against the U.S. for new tariffs on imported steel and aluminum. The Trump administration's 10 percent tariff on aluminum and 25 percent on steel took effect today. I joined "CBS This Morning" to discuss the impact on consumers.

Have a money question? Email me here.