Trending: Geopolitical fears ease as Secretary of State Rex Tillerson and U.S. Secretary of Defense James Mattis stated that the current U.S. administration would continue to pursue diplomatic resolutions with Pyongyang. On Sunday, the two U.S. officials wrote in a commentary piece published in the Wall Street Journal that "the U.S. has no interest in regime change or accelerated reunification of Korea."
Commodities: Last week, gold had its best weekly gain in four months as North Korean tensions fed the rally. In times of heightened uncertainty investors typically seek safe havens like bonds and precious metals. In the past five years gold has fallen -22.5% when markets have rallied, however year-to-date the SPDR Gold Trust ETF has gained 11.09% respectively. In a recent blog post by Ray Dalio, Chief Investment Officer at Bridgewater Associates he commented on Gold and affirmed that investors should have 5-10% of assets allocated to gold as a hedge. At DWS, we agree with Ray Dalio that gold is an excellent alternative asset to use as a hedge in times of uncertainty.
U.S. Politics: Congress must pass a new budget by September 29th to avoid a government shutdown. Senior officials at the White House are expecting a tough month ahead as a confluence of issues loom like the nation's debt ceiling, 2018 federal budget, tax reform, infrastructure spending and the lingering repeal of Obamacare.
"Congress has 12 working days to avoid an economic diaster" | Business Insider
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