Here are the top 3 insights for August 6th.
- American Century Investments: Global Equities Take a Hit as U.S., China Trade Jabs
- Fidelity: US, Europe, Asia drop sharply as US-China trade war escalates
- Barings: The Great Disappearing Trade Deal and How Investors Should Brace for More Turbulence
- Global investors’ sentiment decreased as the likelihood of a resolution to the trade wars faded and the possibility of a global slowdown increased.
- Amid this back and forth, the Dow Jones Industrial Average declined 2.90%, and the broader S&P 500® Index dropped 2.98% in one of the largest one-day declines in recent memory.
- This escalation in rhetoric and trade war tactics spooked global markets in Asia, Europe and then the U.S. Investors appear to be interpreting these events as indications that the trade conflicts are likely to drag on indefinitely, threatening global growth.
Genuine Scores for the top 3 Global Equity Funds:
- Bluerock Total Income+ Real Estate Fund: 99
- Fidelity Advisor Series Growth Opportunities Fund: 93
- Lindsell Train Global Equity: 92
- More bad news on the US-China trade front hit US stocks Monday, as China allowed its currency, the yuan, to drop below the key 7 level vs. the dollar at the same imposing imposed new limits on purchases of US farm goods, two steps sure to upset President Trump.
- European equities dropped again Monday on fallout from the escalation of the US-China trade war, with trade-sensitive and cyclical shares hit the hardest.
- Markets were rattled by the decline in the Chinese yuan below the key level of 7 to the dollar, which raised concern that the trade war was leading to a currency war.
- Concerns over Chinese retaliation against the latest US tariffs added to the gloom, including news that China was limiting purchases of US farm goods, a flashpoint for President Trump.
Genuine Scores for the top 3 USA equities:
- Och-Ziff Capital: 84
- Warrior Met Coal: 80
- Changyou.Com: 79
CONTRIBUTION TO REAL GDP GROWTH
- The Great China Trade Deal evaporated before our eyes last week and investors should stop hoping it back into existence.
- In the increasingly tense relationship between Washington and Beijing, tariffs, retaliation and escalation are all just part of the furniture now.
- “The silence on how an agreement might be patched together and the souring sentiment in both countries suggest the political calculation on both sides has changed.”
Genuine Scores for the top 3 Consumer Staples Stocks:
- Philip Morris: 74
- Avon Products: 69
- Medifast: 69
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All the best,
Genuine Impact Team
p.s. all Genuine Scores are accurate as of the 6th of August