How To Protect Your Investment If US-China Trade Falls Off | Freeman Capital

China Threatens Economic Retaliation

The Senate passed a bill that will sanction China if they continue to undermine Hong Kong’s autonomy from China. This comes atop of new sanctions on Chinese officials and entities as a response to mass detention of Uighur Muslims in China, widely condemned as a human rights violation act, even if behind closed doors. 

As a result, China has claimed that these actions could jeopardize the U.S.-China trade deal. This would mean that China would purchase less manufactured and agricultural goods, resulting in billions of dollars lost for American producers, as well as prior tariffs could come back into place, or new ones.

How To Protect Your Investment

First of all, don’t feel pressured to do anything hastily. It is imperative to remain rational and continue to stick to your processes. According to this article by MarketWatch, some of the things that you can do in order to protect your investments are to continue to dispassionately identify high-quality companies, value them, and figure out how much margin of safety (discount) you need. You may also need to tweak some of your buying process. You can also buy in smaller increments or buy in smaller sizes because uncertainty induced by the virus may result in greater volatility and thus better bargains.

Accept that volatility is part of the process when you invest. The coronavirus pandemic is truly changing the investment landscape and no one can accurately predict the eventual economic fallout.

This is why we are here with you. Together, let’s set  the foundation for long-term financial security and success.

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Freeman Capital

Freeman Capital

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