4 Dividend Mutual Funds To Counter A Volatile Market

In the current gloomy economic scenario, investors may find dividend mutual funds attractive. After all, despite the recent development in U.S.-China trade spat, which could appear as though trade tensions are easing, both countries are still a long way from a definitive trade agreement. Further, other geopolitical issues continue to mount pressure on Wall Street, making it prudent to consider dividend mutual funds.

No Immediate End to Trade Dispute

U.S.-China trade spat took a new turn last week after China allowed its currency to weaken. This was in response to President Donald Trump’s threat of imposing 10% tariffs on the remaining $300 billion worth of Chinese exports starting Sep 1.

On Aug 13, however, the U.S. Trade Representative’s office announced that it would delay tariffs on certain consumer items. These include “cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing,” per the statement. This new development takes about $152 billion worth of goods off the list.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese vice premier Liu He and they are expected to hold discussions again in two weeks.

However, there is still a long way to go for the trade dispute to be over and thus volatility in equity markets could continue. 

Unrest in Hong Kong, a Probable No-Deal Brexit and Argentina’s Near Financial Crisis

Protests in Hong Kong took an ugly turn on Aug 12, after demonstrations at the Hong Kong airport led to the cancellation of majority of flights. It continued on Aug 13 as well. Although the anti-government protests were largely peaceful, Beijing weighed the demonstrations as law-breaking activities and damaging to the law.

According to Chinese state-owned Global Times, the People’s Armed Police assembled in Shenzhen in a bid to handle the situation. The unrest in Hong Kong clearly affected market sentiment.

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