Manufacturers are moving their operations out of China and its hurting china’s economy during a time when they’re already in a slowing economy and have already reduced their currency about as much as they can. Now they’re lowering their reserve requirement so their banks can lend out more money. Their only answer is to inflate. We have a strong economy right now that gives us leeway to weather the little downsides to tariffs in the near term and china’s facing the reality that they don’t get to just have it their way anymore and that’s why they’re meeting next month to discuss a trade deal. I don’t understand why you or anyone else is fighting this. America is finally standing up to China and the same people who we all know would’ve been gushing over this move if Obama had done it are furious about it instead. We just had Powell say yesterday that he doesn’t see a recession in the forecast, while less jobs were added then expected there were other numbers in that report that gave a rosier outlook on the economic future, and the markets are still responding favorably to all of it. The market traded sideways for a while because of uncertainty over a trade policy we haven’t see our government utilize in decades. But as they get more of a taste of the way it’s going to work out we’ve seen that the tensions have eased for investors and they’re starting to buy back in again. We’ve had tariffs on the table for over a year now and the economy is still moving and growing. This is good for EVERYONE the same way it would’ve been good for everyone if Obama had done it instead. I only wish he would’ve so wed be further along with this process already and maybe already had a better trade deal. I don’t care WHO does this, it needed to be done.
Everything in the US is slowing, job growth, manufacturing orders, GDP growth and more.
You say that the market traded "sideways" for a while, well that while is now up to almost 600 days since the start of the trade war, with no real end in sight. That is a good, long while.
Ironically we had a nice jump on Thursday thanks to China saying they want to negotiate more, a stance they have never walked away from. But it is almost as if China is playing with our stock market, they do things to make it go up while they let Trump do things that drive it down.
We do not have a good track record for Trump creating deals that have been worth much. From all reports the trade deal worked out with Japan is basically the exact same thing that was in the TPP, just two years later. The USMCA is nothing more than a couple minor tweaks to NAFTA. If the deal he gets from China is like these two, then there is no way it was worth the pain.
Also, as the tariffs get higher, the US consumer gets hurt more. And none of this addresses the damage done to US Ag industry, which may have lost a major market, permanently.