Reasons to Buy the Next Market Dip

July 11, 2018

By Michael Teich

Trade tensions between the U.S. and China are reaching new heights after the Trump administration proposed tariffs on an additional $200 billion worth of Chinese imports.

Stocks fell sharply on the news, with the Dow Industrials closing Wednesday down nearly 220 points. But some investors think the pullback could be an opportunity for investors.

"Put money to work today," said Kate Warne, Investment Strategist at Edward Jones. "The market is reacting to headline announcements."

"This is really a negotiating posture, rather than something that will go into effect."

Despite accelerating trade fears, Wall Street's attention should shift to corporate earnings season, according to Warne.

"Earnings will be a catalyst for stocks to move higher," she said. "It matters more than the trade tensions, in terms of the outlook for the market."

Banking giants JPMorgan and Citigroup report second quarter earnings on Friday. Netflix releases its results after the bell on Monday.

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