Just one possibility of a zillion, but just for the hell of it:
More data is coming out that points to a slowdown (or worse, later) in the economy. Bond markets have been pointing to it for the last nine months, and we are, as I write this, still in a fairly nasty yield inversion.
So I'll toss out a theory on what we could see: Trump, concerned about the 2020 elections, knowing that the Fed may not have the pull to save the economy even if it lowers rates, decides to cut his losses with China and agrees to a trade deal. Wherever they are in negotiations, right now. Just sign it.
Markets and psychology would probably turn on a dime and rocket upward. That day. Of course, Trump would declare a huge victory and herald it as the greatest trade deal for America in the history of historical histories, talk radio would follow along, and all his fans would say the same thing without actually seeing it.
Then over the course of the next couple of days we'd dig into the deal to see the actual facts, and markets would then react accordingly. That may or may not be a good thing.
I guess we'll find out.
.
More data is coming out that points to a slowdown (or worse, later) in the economy. Bond markets have been pointing to it for the last nine months, and we are, as I write this, still in a fairly nasty yield inversion.
So I'll toss out a theory on what we could see: Trump, concerned about the 2020 elections, knowing that the Fed may not have the pull to save the economy even if it lowers rates, decides to cut his losses with China and agrees to a trade deal. Wherever they are in negotiations, right now. Just sign it.
Markets and psychology would probably turn on a dime and rocket upward. That day. Of course, Trump would declare a huge victory and herald it as the greatest trade deal for America in the history of historical histories, talk radio would follow along, and all his fans would say the same thing without actually seeing it.
Then over the course of the next couple of days we'd dig into the deal to see the actual facts, and markets would then react accordingly. That may or may not be a good thing.
I guess we'll find out.
.