In today’s video I discuss the re-emergence of the trade war spat between the US and China. Up until yesterday, Thursday the 30th, the markets had been ignoring the coming deadline between the two countries, which would trigger higher tariffs if met. Since that looks like it will happen, and the market was reminded about this yesterday afternoon, it was suddenly important again.
With the quick drop in the S&P 500, I thought about a light switch. Well, to be more specific, I thought of a toddler in a high-chair by a light switch who marveled at his power to instantly turn on and off the lights in the room. And that’s how the markets seem to be trading the “trade war” news: No tariff news = light switch on (BUY’em ALL); More tariff news = light switch off (SELL everything!).
The markets are closed this coming Monday in observance of Labor Day. Have a great extended weekend