CLA Outlook — Key Insights for Sound Financial Strategies

Take steps to prepare for changing scenarios.
May 19 Weekly Insights
United States and China reach significant trade agreement
The agreement marks a significant step toward easing trade tensions and boosted global equity markets, but its temporary nature and the complexity of unresolved issues suggest further negotiations are critical.
Data shows inflation is trending back toward the Fed’s 2% target
Inflation is trending back toward the Federal Reserve’s target rate of 2%, thus opening the door for future interest rate cuts. However, there are lingering concerns tariffs may cause inflation to ramp back up even as the economy slows. There is a risk the Fed keeps interest rates too high for too long, slowing the economy more than necessary.  
U.S. dollar strength coincides with U.S. equities outperforming international equities
There is some correlation between U.S. stocks and the strength of the U.S. dollar, with U.S. stocks often outperforming international stocks when the U.S. dollar is strengthening and underperforming when it is weakening. The U.S. dollar has fallen roughly 9.5% since the beginning of the year, which is a primary reason why U.S. stocks have lagged their global counterparts on a year-to-date basis.  
Strategic Steps
5 Actions Portfolio Owners Should Take Considering Market Volatility
During uncertain times, successful investors take strategic steps to prepare for varied scenarios. Explore key actions you can take to navigate these periods:
  • 1. Review your asset allocation
  • 2. Harvest tax losses
  • 3. Make Roth conversions
  • 4. Put excess cash to work
  • 5. Consider gifting strategies
  • We can help
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