Global Markets Recap
Suddenly, equities are taking a breather as POTUS announced a press conference on China tomorrow.
You wonder what he’ll want to discuss & how investors will interpret his remarks. Recall, while this year has been singularly about COVID-19, only a year ago the only topic any hedge-fund manager gave a hoot about was the China trade deal – which, when it finally got signed propelled US stocks to all-time highs.
What might Mr. Trump want to discuss tomorrow & how will the market views those remarks – bullish or bearish. Let’s examine:
- Formally blame China for faulty coronavirus reportage &seek remedies: Hyper-bearish
- Suspension of Trade Deal: Lights Out
- Say the end is nigh for Hong Kong autonomy & slap on trade sanctions: Mildly-hyper-bearish
- Announce we sent 2 warships (which we did) to the South China seas: Bearish
- Tell the world POTUS will mediate the border spat between Beijing & Delhi: Mildly bullish
- Declare his plan to repatriate US manufacturing companies home from China & shower them with tax breaks: Bullish
- A resolution on Huwaei & cyber-spying: Hyper-bullish. Odds: 1 in 100 billion.
There you have it. As Ray Dalio keeps noting: the U.S. & China seem on an inevitable collision course. Tomorrow’s White House press conference, then, is of extreme importance.