It seems we have a good old-fashioned trade war on our hands.
It has the markets roiling and boiling, and volatility has reared its ugly head once again.
No one knows how long this could go on and what impact it will have on the stock market.
All I can say for you is move carefully.
What you do now could wreck your portfolio and set your retirement plans and investment hopes back in a big way.
As some alleged experts believe, rushing to sell would be a colossal mistake if the war is over quickly with few casualties.
On the other hand, running to buy indexes of the hot tech names could equally be a disaster if both sides dig their feet in, and the war and the selling lasts longer than hoped.
Now is the time to look carefully at the stocks you own and ask yourself one crucial question.
Last week Henry McVey of private equity giant KKR & Co. (KKR) put out a piece titled “The Uncomfortable Truth” describing his macro view of the world and the global search for yield.
He makes the case that due to a few crucial factors like a slowing economy, aging population, excess capacity in many materials, and expanding technological innovation, that interest rates in the developed world are likely to remain low for a very long time.
While I would like to argue that he is wrong, I simply don’t think I can.
We saw in December how violently markets reacted to attempts to normalize interest rates.
It would seem that the central banks of the world have gotten themselves into something of a pickle, and they won’t find their way out for quite some time.
I read pretty much everything Mr. McVey writes for two reasons.
First, he is laying out the macro game plan of a firm with $200 billion in assets and fingers in just about every corner of the global economy is going to follow.
Second, I have been following him for several years now, and he is right far more often than he has been off the mark.
Following his macro view has made me money, and I am willing to listen to anyone that can help me make more money for myself and Max Wealth readers.