This up-down nature is sometimes blamed on the Fed and interest rates, and sometimes blamed on the trade war. In our opinion, the latter explanation is the correct one. Our current administration seems to view life as a zero-sum game. That is a very bleak way of looking at life; life is a win-win proposition.
The first step in solving a problem is figuring out what is causing it. Too often we get so focused on the symptoms that we forget to treat the disease. The market – which has had a fantastic year – is having a tough few days. There are two competing causes: trade and Fed policy. So, which is it?
