Last January, many were alarmed when the Dow Jones average dropped by 500 points. They looked for fundamental reasons for this drop in the market, such as the China slowdown, the falling price of oil, and the Fed rate hike. AOG Wealth Management provides a closer look at these recent market influencers.

China’s Booming Market

China is the world’s second largest economy. Many tax planning Washington, DC area advisors would point out that so was Japan until 1989, when the Japanese market collapsed and markets in other countries grew. This should also be true for China today; even if the Chinese market had dropped further, the U.S. market still would not have entered into a recession in 2015.

Oil Price Volatility

As for oil, the current situation is not as bad as that in the early 1980s. In 2007, four of the biggest banks in the U.S. had 7.5% tier one capital. Today, we’re at 12.6% tier one capital, which is a far better figure compared with previous years.

Federal Rate Hike

For the Federal rate hike, most banks did not use the money or bonds bought by the Federal Reserve. Some investors believe that the high rise in stocks was not caused by the Federal loans because the banks never lent the money. In fact, money has grown about 6% in the past year, so there’s no sign of Federal Reserve tightening.

The market has had its own highs and lows since then, but expert McLean financial planning advisors see this as an opportunity. Although the country has experienced far greater declines in the past several years, we’ve always seen the market bounce back. Earnings continue to be strong and steady.

AOG Wealth Management can help you sort through market influencers and make investment decisions that are suitable for your wealth and asset management needs. With our years of experience and team of expert financial advisors, we can provide customized investment solutions based on your goals and circumstances. We specialize in asset management, investment planning, and tax planning in Washington, DC Northern Virginia, and nearby areas.

If you want to learn more about the country’s current market state and the next step to take, call us today at (866) 993-0203. We look forward to hearing from you.