Susan Tompor: Trump’s threat to raise tariffs could bring bumpy ride for stocks, 401(k)
At best, everyday investors should get ready for a bumpy ride in the days ahead. The Dow fell steeply in Tuesday trading.
Stocks could be vulnerable as the politics build around trade and tariffs, said
"The concern of a trade deal being watered down or delayed has raised concern among stocks," Sowerby said.
The Dow Jones industrial average closed at 26,504.95 points on
The Dow closed at 25,965.09 points -- down 473.39 points or 1.79% -- by the closing of trading Tuesday.
There's a worry that the trade uncertainty has the potential to hurt business confidence, reduce capital spending and put consumers on edge.
On the plus side, major stock indexes had been up 15% to 17% for the year through early May, thanks to a healthy economy, lower interest rates and the prospects for a trade deal with
As a result, investors should not forget that the
"Broadly speaking, equity prices went on a tear for the first four months of the year with nary a material pullback," said
"History tells us that there are usually price pauses. And trade frictions are as good a reason as any for traders -- not long term investors -- to realize profits," Bilkie said.
"I still believe the long term outlook for stocks is positive -- but this is a 5-10 year outlook, not 5-10 weeks," he said.
The
The top year-to-date performance was 27.3% in 1975 -- followed by 19.1% in 1987.
"The natural question now is whether the market is in need of a rest," Stovall wrote on
He noted in an email Tuesday that the pushback from
"Investors are now readjusting their assumptions to include the possibility that this issue will not be resolved anytime soon," Stovall said.
"We disagree and think a dragged-out trading discord would benefit neither side, since it would have negative implications on both global economic growth and
Stovall said he would guess that a resolution would come in the months ahead, and likely no later than the third quarter.
Bilkie noted that there are many crosscurrents when it comes to the issues involving
President
"President (Donald)
Yet against a backdrop of a strong
"I think the Chinese will come around and this will not prove a long term economic or stock market setback," Bilkie said.
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