What\u2019s next for U.S relations with China? And North Korea? And\ncould the cyclical stocks rally be a good sign for the market? Read on to get our\nanswers and more in this week\u2019s Steady Investor!<\/p>\n\n\n\n
A\nMixed Bag of Economic and Geopolitical News: Asia \u2013 <\/strong>U.S.\nrelations with China and North Korea remain in a tense state, where markets\nremain in continued hope for some kind of positive breakthrough. This week\ndelivered a mixed bag of economic and geopolitical news. Let\u2019s start with\nChina, where a modest relief came to the markets in the form of President Trump\nand trade czar Robert Lighthizer confirming that the United States would\npostpone increasing tariffs to 25% on $200 billion worth of goods, which were\nscheduled to take effect on Saturday. President Trump cited \u201csubstantial\nprogress\u201d in talks with the Chinese and Mr. Lighthizer appeared to confirm\nthe same, though Lighthizer paints a picture where the gulf between the two\ncountries remains wide. Both leaders appear eager to reach a deal \u2013 it would\nmark a major victory for the Trump Administration, and the Chinese government\nappears increasingly concerned that their economy is feeling the pressure. Just\nlast week, China\u2019s president, Xi Jinping, summoned hundreds of government\nofficials to meet with a sense of urgency about holding ground and\nre-committing to China\u2019s long-term growth goals.1<\/sup> <\/p>\n\n\n\n _____________________________________________________________________<\/p>\n\n\n\n You Can\u2019t Eliminate Volatility, But Here\u2019s How You Can Deal with It!<\/a><\/strong> If you have $500,000 or more to invest and want to get answers to the questions above, click on the link below to download this guide today! ________________________________________________________________________<\/p>\n\n\n\n Meanwhile, in Vietnam\u2026<\/strong>Much attention was focused this week on President Trump\u2019s\nsummit with North Korean leader Kim Jong Un, with the international community\nhoping for a breakthrough in nuclear disarmament talks and peace on the Korean\npeninsula. The world got neither \u2013 talks ended abruptly as the North Korean\nleader would not offer full dismantling of the country\u2019s nuclear\ninfrastructure, and President Trump would not offer an end to sanctions for\nanything less. President Trump emphasized that the U.S. is not in any hurry to\nreach a deal, as long as no nuclear or missile tests were conducted in the\nmeantime.3<\/sup> A hopeful, but not conclusive, result. <\/p>\n\n\n\n Cyclical Stocks Rally \u2013 A Good Sign for the Markets? \u2013 <\/strong>U.S.\nand global equities have delivered a fairly sustained rally since the sharp\ncorrection that ended on Christmas Eve. The rally has largely lifted all boats,\nand investors with broad, diversified equity exposure probably (hopefully)\nparticipated in the upside. But one category in particular that has been a\nleader in the turnaround is cyclical stocks \u2013 which, interestingly, tend to be\nhighly sensitive to U.S. economic health. Cyclical stocks, historically, have\ntended to do very well at the start of a new economic expansion, since that\u2019s\nwhen the U.S. economy is expected to accelerate the most coming out of a\nrecession. So, seeing cyclical stocks perform well this late in the cycle is an\nencouraging sign. Specific categories that have experience strong rallies over\nthe last two months include Industrials, Financials, and Energy stocks, all of\nwhich could continue to benefit moving forward as the Fed pauses interest rate\nincreases and stops runoff of its balance sheet.4<\/sup> A trade deal with\nChina could add more tailwind to this category, in our view. <\/p>\n\n\n\n While Everyone Watched Michael Cohen and Kim Jong Un\u2026<\/strong>Federal Reserve Chairman Jerome Powell\nentered his second day of testimony to discuss the Fed\u2019s plans and the state of\nthe US economy. Mr. Powell cheered markets by reinforcing plans to stop\nshrinking the Fed\u2019s $4 trillion portfolio of bonds later this year, and gave\nfurther indication of the Fed\u2019s willingness to remain patient as the year\nprogresses.5<\/sup> The next rate-setting meeting takes place on March 19,\nand the market largely expects the Fed not to make any changes to interest\nrates. <\/p>\n\n\n\n How to React to Volatility?<\/strong> One challenge that many equity\ninvestors are facing and will most likely continue to face throughout the year\nis how to react to volatility. In our view, it is important to remember that\nvolatility is a normal part of the ebb and flow of the markets. We believe the\nkey is not to look for ways to eliminate it, but to develop a mental approach\nto dealing with it.<\/p>\n\n\n\n Our Volatility guide, \u201cHelping You Manage Market Volatility,\u201d6<\/sup>\nwill provide you with insights and tips to do just that. Get answers to\nquestions like:<\/p>\n\n\n\n If you have $500,000 or more to invest and want to get answers to\nthe questions above, click on the link below to download this guide today!<\/p>\n","protected":false},"excerpt":{"rendered":" What\u2019s next for U.S relations with China? And North Korea? 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The challenge that equity investors face is not in finding a way to eliminate volatility\u2014it is in developing a mental approach to dealing with it. This guide will provide you with insights and tips to do just that. Get answers to questions like:<\/p>\n\n\n\n
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Download Zacks Volatility Guide, \u201cHelping You Manage Market Volatility.\u201d<\/a>2<\/a><\/sup><\/strong><\/p>\n\n\n\n