Trade Falls Behind Time ⌛

by | 14 Aug, 2019

Trade Falls Behind Time 

The markets are waiting for President Trump to make a leap of fiscal faith, but he wants a moment. Delaying the 300 billion dollar tariffs that he promised to hike against China, many investors are capitalizing on this window of opportunity!

Don’t be duped investors; this certainly is not a trade truce. It’s just the US trying to get its paperwork in order before landing a sucker punch to China, it hopes. The market knows geopolitical policy takes time to draft up, but many market players still wonder if there’s something more at play here. This latest trade wave will leave most of Trump’s cards face up on the negotiating table, with his border costs to be applied to every possible Chinese good! Maybe, just maybe, he’s worried what cards President Xi is still hiding.

The trade impasse has never looked so clogged up. The saga must run out of road at some point, with neither side able to live while the other survives. Both economies have been put on the deck, the American markets the latest to wobble after China weaponized its currency last week. The markets also appear to be very sensitive. In response to Trump’s pause yesterday, investors in Best Buy deemed the company to be 10% more valuable than it was the day before. Sounds far-fetched, and it is!

Apple also had a good day, rising 5%, and toymakers Mattel and Hasbro, 6% and 9% respectively. By the closing bell, the feeling of relief wound up being very lucrative for the main victims of the trade war. However, the short-term will be over soon, and investors will need a complete ending, any ending, to the big-picture spat. This is suspicious news out of the White House, so could an end be near?

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