by Patrick Fearon-Hernandez, CFA | PDF
When people think about a country’s exports, imports, and trade balance, they often focus only on physical goods (sometimes referred to as “commodities” or “merchandise”). That makes some sense, given that physical goods account for the majority of international trade for most countries. Trade in physical goods can also be volatile, and it can have big implications for a country’s domestic politics. All the same, services are also a big part of international trade. In this report, we take a close look at the role of services in U.S. trade. We highlight how U.S. trade in services plummeted as a result of the global COVID-19 pandemic, and how it’s now starting to bounce back. We end with a discussion of how that plunge and budding rebound may affect investors.
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These reports were prepared by Confluence Investment Management LLC and reflect the current opinion of the authors. Opinions expressed are current as of the date shown and are based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change. This is not a solicitation or an offer to buy or sell any security. Past performance is no guarantee of future results. Information provided in this report is for educational and illustrative purposes only and should not be construed as individualized investment advice or a recommendation. Investments or strategies discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances.