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Entrepreneur
16-05-2025
- Business
- Entrepreneur
Wall Street Reacts to Trump's China Tariff Agreement
According to David Bahnsen, managing director of The Bahnsen Group, financial markets responded cautiously to President Donald Trump's recent trade deal with China. Speaking on the 'Making Money' program, Bahnsen... This story originally appeared on Calendar According to David Bahnsen, managing director of The Bahnsen Group, financial markets responded cautiously to President Donald Trump's recent trade deal with China. Speaking on the 'Making Money' program, Bahnsen offered insights into how investors interpret the latest development in the ongoing trade negotiations between the world's two largest economies. The agreement, which represents a potential easing of tensions that have rattled global markets for months, comes after several rounds of talks between U.S. and Chinese officials. While details of the deal remain limited, it appears to address some of the tariff concerns that have weighed on investor sentiment. Market Impact and Investor Response Bahnsen noted that market participants had already factored in some expectation of progress on the trade front, which explains the measured reaction from major indices. 'The market had priced in a degree of resolution, so we're not seeing dramatic moves despite the announcement,' Bahnsen explained during the segment. According to Bahnsen's analysis, specific sectors showed stronger responses than others. Companies with significant exposure to Chinese markets or those heavily dependent on cross-border supply chains demonstrated more notable price movements following the news. The financial expert pointed out that while the agreement addresses tariffs, investors remain concerned about other aspects of the U.S.-China economic relationship, including: Intellectual property protections Market access for U.S. companies Currency policies Long-term strategic competition Economic Implications Bahnsen emphasized that the tariff agreement could provide some relief for U.S. businesses that have faced higher costs and supply chain disruptions. 'Companies have been dealing with uncertainty for months. While not comprehensive, this agreement offers some clarity that allows for better business planning,' he said. The managing director also discussed how the deal might affect consumer prices, noting that American shoppers could see modest benefits if tariff reductions are passed along through the supply chain. However, he cautioned that the full economic impact would take time to materialize. We need to watch how this influences business investment decisions, which have been somewhat restrained due to trade uncertainty,' Bahnsen added. Looking Beyond Tariffs During the 'Making Money' appearance, Bahnsen stressed that investors should maintain perspective about the agreement's place in the broader economic picture. 'Trade policy is just one factor among many that drives market performance,' he stated. The financial expert highlighted other critical variables that continue to influence stock performance, including: Corporate earnings growth, Federal Reserve policy, and overall economic health remain fundamental drivers that will determine market direction in the coming quarters. Bahnsen suggested that while the tariff agreement represents progress, the U.S.-China economic relationship remains complex and will likely continue to experience periodic tensions. He advised investors to maintain diversified portfolios that can withstand potential volatility from future trade developments. The managing director's comments reflect a growing consensus among financial professionals that while immediate market reactions to trade news can be significant, long-term investment success depends on focusing on company fundamentals and broader economic trends rather than responding to each development in international trade policy. As markets digest the implications of the China tariff deal, attention will likely shift to how the agreement is implemented and whether it leads to more comprehensive economic cooperation or remains a limited arrangement addressing specific trade concerns. The post Wall Street Reacts to Trump's China Tariff Agreement appeared first on Calendar.
Yahoo
16-04-2025
- Business
- Yahoo
Could Tariff Exemptions Calm Market Volatility?
David Bahnsen, Founder & Managing Partner of the Bahnsen Group, discusses whether or not President Trump talking about tariff exemptions or flexibility will be a way to calm down market volatility, and how companies will move forward and try to provide guidance as there is still uncertainty around the President's tariffs. David speaks with Kailey Leinz on the late edition of Bloomberg's "Balance of Power." Sign in to access your portfolio
Bloomberg
15-04-2025
- Business
- Bloomberg
Trump Floats Tariff Exemptions For Auto Parts
"Balance of Power: Late Edition" focuses on the intersection of politics and global business. On today's show, Treasury Secretary Scott Bessent talks about President Donald Trump's tariff policies, countries trying to work out new trade deals, and Argentina paying off its swap line with China. David Bahnsen, Founder & Managing Partner of the Bahnsen Group, discusses whether or not President Trump talking about tariff exemptions or flexibility will be a way to calm down market volatility. Janet Yellen, Former US Treasury Secretary and Former Federal Reserve Chair, weighs in on President Trump's tariff plans & whether or not a 90-day pause and possible exemptions are positive or create more harm than good. (Source: Bloomberg)
Bloomberg
14-04-2025
- Business
- Bloomberg
Could Tariff Exemptions Calm Market Volatility?
David Bahnsen, Founder & Managing Partner of the Bahnsen Group, discusses whether or not President Trump talking about tariff exemptions or flexibility will be a way to calm down market volatility, and how companies will move forward and try to provide guidance as there is still uncertainty around the President's tariffs. David speaks with Kailey Leinz on the late edition of Bloomberg's "Balance of Power." (Source: Bloomberg)
Yahoo
10-04-2025
- Business
- Yahoo
How should you handle your 401(k) or IRA during market volatility?
Financial markets have experienced historic volatility in recent days amid elevated uncertainty due to President Donald Trump's trade war with China and other countries, and experts say that investors should stick with their long-term plans and resist the urge to make snap decisions. The Dow Jones Industrial Average experienced back-to-back swings of more than 2,000 points in consecutive trading sessions on Monday and Tuesday, with Monday's session setting a record for the largest intraday point swing. With investors watching their 401(k), IRA or other brokerage accounts fluctuate wildly, experts suggest that they shouldn't panic and sell stocks or deviate from a long-term investing plan, and instead should continue with that plan because if the plan is well-diversified, the volatility will be beneficial over the long run. "If investors have a good plan in place, then they should stick to the plan," David Bahnsen, founder and managing partner of the Bahnsen Group, told FOX Business in an interview. "For example, if they have a stock market in their 401(k) or their retirement accounts, then that weighting in the stock market is supposed to take into account the fact that markets sometimes go down a lot." Goldman Sachs Increases Recession Probability, Warns Of Further Downgrade If More Tariffs Take Effect "They don't do it a lot this quickly, this violently, but they do it," he added. "It happened after COVID, it happened after the financial crisis, it happened after 9/11. Every five to seven years you have one of these experiences, and they're really brutal for people, but they're part of why investors get a better return over time from being in the stock market." Read On The Fox Business App Bahnsen explained that by reacting to turmoil in the market and making decisions based on volatility-induced panic, they risk reducing their long-term gains. "What investors do to undermine their own return is panic out in these times, and what I think investors need to do is really remember that we don't know if this trade war is done in two hours, two weeks, or two months — what we do know is it will be over," Bahnsen explained. "This market violence may already be near the end, it may have a lot further to go, but it will be over." Gen Z Outpaces Older Generations With Earlier Jump Into Investing: Report Bahnsen added that investors who are contributing to their 401(k) accounts or are reinvesting dividends during volatile downturns are improving their portfolio over the long-term by buying stocks at relatively low prices. "It's one of the big reasons that I built a $7.5 billion business as a dividend growth investor, because dividends reinvesting during volatile down times help your portfolio — you're picking up more shares at lower prices," he explained. "So if people are adding to their 401(k) every two weeks, if people are reinvesting dividends, their portfolio is getting better as things are going down, not worse. And that isn't just a reverse psychology thing, it's real math, it's really how this works." Retirement Planning: The Differences Between A Traditional And Roth Ira Christopher McMahon, president and CEO of Aquinas Wealth Advisors, emphasized in an interview with FOX Business that investors should periodically go through the process of evaluating their investments for their risk tolerance, age and retirement plans, then make any rebalancing decisions as part of a structured process — rather than trying to do so in the midst of market volatility. "Develop an asset allocation model, stick to it, and then every 18 months at most, and if you're getting close to retirement and you're in your late 50s or 60s, every 12 months at most you should be reevaluating that risk profile," he said. McMahon also noted the market's historical recovery period from significant downturns is relatively quick in the context of a long-term retirement plan, making it all the more important for investors to remember that there will eventually be a bounceback. "The average recovery time from a 10% downturn has been three months. The average recovery time from a 20% adjustment is eight months. Now, it may not happen this time, but it will certainly recover," he article source: How should you handle your 401(k) or IRA during market volatility?
