It’s hard to believe that skipping Starbucks twice a week can help you save for retirement, but that could be all it takes to make a big difference.
The first quarter of 2018 was the first down quarter for US stocks since the third quarter of 2015. The 10 quarters since we’ve seen relatively steady growth. That relative calm has made the first quarter all the more jarring with multiple daily swings of 1% or greater.
How much should we save for retirement? It’s a simple question with a complicated answer. Our friends at Dimensional Fund Advisors put together a short video detailing some of the important factors to consider when saving for retirement.
Recently, President Trump announced that his administration planned to apply tariffs on all imports of 25% for steel and 15% on aluminum. These wouldn’t target specific countries accused of malicious trade practices, but all countries. Leaders from around the globe condemned the moves and said they could impose their own tariffs on US goods. Investors feared the resulting tit for tat could result in a global trade war and markets declined on the news.
With stocks hitting record highs nearly daily in January we heard from many investors that this couldn’t possibly continue. There was a fear that there would be a downturn. This time that sentiment proved to be correct.