When China Sneezes…
The quote above has been circulated around for years…..but how much truth does it hold? Well, if the start to 2016 is any indicator… global markets are paying close attention to China. Chinese stock markets got off to a horrific start in 2016. As a result, the negative sentiment is spreading quickly. The US markets are off to their worst 5 day start in……HISTORY. Consequently, we are seeing the bond and stock markets retreat convincingly.
Is the market drawdown justified? Many questions are beginning to circulate. It is too early to say we are in a correction as the market averages have not yet reached that level. No one can say with any certainty, but it is times like this that having a disciplined investment strategy becomes more important than ever. Remember your goals, objectives, and time horizon……if none of that has changed over the past week then why should your investment strategy change? Here’s a hint…….IT SHOULDN’T!!!
Interested in a compliment Portfolio Stress Test?
Is your portfolio protected from the risk that China presents? If you don’t know, lets run a portfolio stress test. Contact