It’s time to buy stocks for the trade-deal rally that’s just around the corner

On May 2 we suggested caution on U.S. stocks because sentiment seemed rich, and four risks appeared likely to ding the markets, including a breakdown in U.S.-China trade progress.

But since sustained market gains and economic growth are among his few victories, they are fundamental to his 2020 re-election bid. Trump knows this. So he and his team have plenty motivation to get a China trade deal done. So far, personal consumption expenditures , the Fed’s preferred inflation measure, has stayed in check. But this could change because of tariffs. Trump likes to give the impression that tariffs come out of the pockets of the Chinese. But in reality, either U.S. consumers pay in the form of higher prices, or companies take the hit if raising prices on their goods threatens sales growth.

4. Trade wars could hurt the U.S. economy U.S. exports to China represent a minuscule 0.6% of gross domestic product , says McDonald. So Chinese tariffs on U.S. goods don’t seem like a big deal for the U.S. But in reality, tariffs could have an outsized impact on the U.S. economy by dampening business confidence. Trade wars hurt global growth, and business leaders know it.While business confidence has been hanging in there, we are already seeing some signs of a decline.

The bottom line: Because of all of the pressures listed above, we are likely to see a trade deal soon. “Both sides are worried about the fall out here,” says Paulsen. “If there is any truth at all that they were 90% along, then there is room to announce an agreement where both sides can hold up some victories. This could end as fast as it came.” McDonald, at Bear Traps Report, thinks a deal could happen in the next few weeks.

There won't be a trade deal between the USA and China until at least 2024. realDonaldTrump will win the 2020 election and Donald J Trump is inherently racist towards people of color. Watch what happens when American companies start pulling their manufacturing back to the USA.

True. Also buy wall futures for the wall that Mexico is paying for, just around the corner.

Lol. Anyone who buys stocks on this dead cat bounce is a fool. China is going to crush Trump in this trade war by booting all US companies out of China and by selling its 1.3 TRILLION in US Treasury bonds. The stockmarket is going to spx 2000.

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