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.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asia stocks slip, bonds rally on fears China-U.S. trade deal unravelingAsian equities tracked Wall Street's slide on Wednesday, while investors sw...
Source: Reuters - 🏆 2. / 97 Read more »

Asia stocks slip, bonds rally on fear China-U.S. trade deal could unravelAsian equities tracked Wall Street's slide on Wednesday, while investors sw...
Source: Reuters - 🏆 2. / 97 Read more »

Stocks close little changed in volatile trading day as investors unsure of trade deal outcomeStocks closed little changed Wednesday following a deep sell-off earlier this week due to U.S.-China trade war fears. The Dow finished the day 5 points higher, while the S&P 500 was down 0.16%. realDonaldTrump lost over a Billion Dollars he is trying to do the same for America
Source: CNBC - 🏆 12. / 72 Read more »

Global stocks slip, bonds rally as U.S.-China trade fears growAsian equities tracked Wall Street's slide on Wednesday as the latest devel...
Source: Reuters - 🏆 2. / 97 Read more »

China stocks, currency weaker on trade war escalation, state buying seenChinese stocks were weaker on Tuesday as the tariff war between Washington and B... Domain for sale
Source: Reuters - 🏆 2. / 97 Read more »

Investors pull more than $20 billion from stocks on 'trade deal trauma': BAMLGlobal equities have seen outflows of $20.5 billion in the past week as 'tr... wow
Source: Reuters - 🏆 2. / 97 Read more »

'Trade deal trauma' sees investors pull $20 billion from stocks in a weekInvestors pulled more than $20.5 billion from global equities in the past week, showing the impact of trade tensions between the U.S. and China on confidence in financial markets. At rapid speed hackers are attacking and braking into exchanges to steal what ever they can. Be smart buy best hardware wallet on the market at discounted price Yea, a great buying opportunity now too.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks gain on trade deal hopes, set for worst week since DecemberGlobal stocks made gains on Friday as investors held out hopes for a trade deal ...
Source: Reuters - 🏆 2. / 97 Read more »