Investors should own different asset classes.

Kingsview Asset Management CIO Scott Martin on how Americans can keep their money safe amid market volatility.

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U.S. stocks plunged as much as 500 points amid worries over the escalation in U.S.-China trade war. Stocks pared losses, but still giving up most of Tuesday’s gains after investors moved money to safe-havens such as gold and U.S. government bonds. The 10-year Treasury yield tumbled to a fresh low of 1.622 percent, the lowest since October 4, 2016. Two surprise interest rate cuts caught investor attention, raising concerns about global economic conditions.

New Zealand’s central bank cut its official cash rate 50 basis points to a record low of 1 percent, which was larger than expected. The Bank of Thailand followed suit, cutting its one-day repurchase rate by 25 basis points to 1.5 percent. U.S. stocks recouped some of their losses Tuesday after China backed off from a further escalation in the country’s trade and currency dispute with Washington, steadying financial markets. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all rose at least 1.2 percent.

Comments by St. Louis Federal Reserve Bank President James Bullard may have been offset by those by White House economic advisor Larry Kudlow. Bullard said the U.S. central bank may be stuck with a volatile global trade environment for years. Kudlow said the Trump administration wants to continue trade talks with China and is still planning to host a Chinese delegation for talks in September. Major banks have checked in on trade. Goldman Sachs said it no longer expects a trade deal to be struck before the November 2020 presidential election. Morgan Stanley warned that more tit-for-tat tariffs could tip the world economy into recession by the middle of next year. Oil prices tumbled nearly 4 percent to a fresh seven-month low, following an unexpected rise crude supplies and fears of lower crude demand due to deepening U.S.-China trade tensions.

Walt Disney Co reported a bigger earnings decline than expected after the markets closed on Tuesday. The company poured money into its streaming media and began integrating assets purchased from Twenty-First Century Fox. Shares fell 5 percent in after-hours trading to $135. Pharmacy benefits manager CVS Health will lead off Wednesday morning’s earnings parade as well as specialty retailer Office Depot and fast food chain Wendy’s.

Source: Ken Martin – Fox Business News

 

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