August 2019: How to Manage Your Wealth in Times of Chaos

By Marguerita Cheng, CFP® • CEO, Blue Ocean Global Wealth

August can be hot and muggy. It leaves one pining for a fresh autumn breeze. Since 1970, August has, on average, been a lackluster performer for stocks (St. Louis Federal Reserve S&P 500 data). Last month was no exception – hot and muggy.

While August’s historically weak numbers are difficult to explain (September is the weakest), last month’s volatility and modest selloff can be traced to a couple of factors: escalating trade tensions with China and rising concerns about the global economy.

Last month, President Trump upped the ante in the trade war with China. Not surprisingly, China retaliated, and the U.S. responded in kind.

But what might be the president’s strategy?

China has benefitted from the status quo for over 20 years. China has had no incentive to change its behavior.

There’s a new sheriff in town

Its economy has grown rapidly, in part, due to its ability to sell cheap goods to U.S. consumers. It has also obtained technology via theft and forced technology transfers from its U.S. partners doing business in China.

Up until now, China has had no incentive to play by the rules. Why should it? Crime pays.

About Marguerita M. Cheng: The founder and Chief Executive Officer of Blue Ocean Global Wealth is a regular columnist for Investopedia & Kiplinger, and has worked as a spokesperson for the AARP Financial Freedom Campaign. Prior to launching her firm in September 2014, she was a Financial Advisor at Ameriprise Financial and an analyst and editor at Towa Securities in Tokyo, Japan.

She is the recipient of the Ameriprise Financial Presidential Award for Quality of Advice and the prestigious Japanese Monbukagakusho Scholarship. In 2017, she was named the #3 Most Influential Financial Advisor in the Investopedia Top 100, a Woman to Watch by InvestmentNews, and a Top 100 Minority Business Enterprise (MBE®) by the Capital Region Minority Supplier Development Council (CRMSDC).

Marguerita’s certifications include: CFP® professional, Chartered Retirement Planning Counselor^SM, Retirement Income Certified Professional® and a Certified Divorce Financial Analyst. As a Certified Financial Planner Board of Standards (CFP Board) Ambassador, Marguerita helps educate the public, policy makers, and media about the benefits of competent, ethical financial planning. She serves as a Women’s Initiative (WIN) Advocate and subject matter expert for CFP Board, contributing to the development of examination questions for the CFP® Certification Examination.

She volunteers for several organizations including: CFP Board Disciplinary and Ethics Commission (DEC) hearings, she has also served on the Financial Planning Association (FPA) National Board of Directors from 2013-2015 and is a past president of the Financial Planning Association of the National Capital Area (FPA NCA). Click here to learn more about Blue Ocean Global Wealth.

Thoughts, questions? Click here to contact Marguerita today.