As expected, the Federal Reserve raised the Fed Funds target a quarter point to its new range of 1.50% to 1.75%. As risk increases along with time, these short duration ETFs are safer than putting money into a volatile market.
2. FAAANG Has Seen Hit After Hit
The FAANG combo of Facebook Inc. (NASDAQ: FB), Amazon.com Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Netflix, Inc. (NASDAQ: NFLX) and Google parent Alphabet Inc. (NASDAQ: GOOGL) is an acronym for five high-performing technology stocks in the U.S. equity markets have all been off to a rough quarter.
With the continual attacks on Amazon by Trump, the Facebook Cambridge Analytica scandal, and reports that Tesla may not make production goals, it’s no surprise that other FAANG members have dropped.
While internet stocks were all the rage, with all the drama investors are moving their money to safer ground where they can be sure to get dividends.
Related: Cash Runs Into This Conservative ETF
3. Trump’s Trade Wars With China
Beijing responded to Trump’s bump on steel and aluminum tariffs on Monday by imposing tariffs on $3 billion of US imports. The tariffs apply to 128 products, ranging from pork and meat to steep pipes. Trump plans to place tariffs on about $50 billion more of Chinese goods.
“China is not afraid of a trade war,” the vice minister of finance, Zhu Guangyao, said at a news conference to discuss possible countermeasures. Many believe that China could handle a trade war better than the U.S. because of the nature of their economy and government.
“The latest U.S. measures against China carry a sense of containment, which purportedly is commonplace among U.S. politicians,” said an editorial in Global Times, a nationalist state-run tabloid. “But they have overlooked the fact that China has grown to be another economic center of the world.”
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