Trade Talks Progress. No, Seriously!
Phase 1 complete! The opening lines of a brand new trade agreement between the US and China are in the bag, and now the only thing standing between investors and a rip-roaring stock market celebration is President Xi’s signature. The world could be about to shrink, so here are the deets!
President Trump had his 14th round of tariffs locked and loaded for today, but with a deal in sight, he has abandoned those plans. Now we’re getting somewhere! The two sides may be nearing a resolution in what looks like the beginning of the end. The only problems are that China wants Trump to abandon his December hikes as well before putting pen to paper, and we still don’t know what the end really means.
As with issues elsewhere around the world, no deal could spell disaster for the stock market. However, if both sides drop their economic weapons and shake on new terms, stocks like Apple and AMD could spring back in a major way. Investors are holding out hope that once this precious agreement is reached, stock slamming tariffs will subside as both countries try to preserve their fragile common ground.
That’s the bullish case, but some ‘permabears’ never change their colors. In place of the trade war, get ready to hear all about high junk debt, Brexit, and Russia.Paralysis by analysis will keep many sitting on the sidelines, but not us! There are great businesses out there to own right now, and progress in the trade war will help those shine through.
Onto phase 2!