Will Investors Blame President Trump When The “China Deal” Leads To A Market Crash?

For months now, the Trump administration, through both tweets from the President and countless articles published in the financial media, has proclaimed that a trade deal between the US and China was “just around the corner.”

Every single time these stories/ tweets hit the newswires, stocks have rallied on the news. Every. Single. Time.

And it was all complete BS.

How do I know this? Because Bloomberg just unintentionally revealed it more than halfway down an article concerning a possible meeting between President Trump and Premiere Xi of China.

Lighthizer this week pointed to “major issues” still unresolved in the talks, with few signs of a breakthrough on the most difficult subjects. Chinese officials have also bristled at the appearance of the deal being one-sided, and are wary of the risk of Trump walking away even if Xi were to travel to the U.S.

Source: Bloomberg (H/T Bill King)

Without an agreement on “the most difficult subjects” (i.e. IP theft, enforcement of violations) there is NO trade agreement. End of story.

For more market insights and investment ideas, swing by our FREE daily e-letter at www.gainspainscapital.com.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.