How many times have we seen the market move on news about China and the US over the past year or so?
Probably more times than anyone would care to count…
Every time the rumor mill starts, the market seems to move one way or another – but things seem to be moving in a more positive direction lately – and we can only hope we’re close to the end of the trade war.
Actually, there does seem to be some light at the end of the tunnel…
And thankfully, it doesn’t appear to be the lamp of an oncoming train! No, the latest news out of Beijing last week was very promising – and may be the one thing that we needed to kick this economy into overdrive.
It all starts and ends – with tariffs.
Now, a fair warning to our readers, this article will lightly touch on politics…
And while we try to remain as impartial as possible, please keep in mind that we simply report the facts as they’re presented.
When President Trump first got us into the trade war – there were all kinds of people yelling how it was going to not only destroy the American economy – but was probably going to destroy the global economy as well.
However, minus a few twists and turns…
The effects of the trade war haven’t proved to be as drastic as many predicted.
The fact that the American market managed to hold up pretty well seemed to surprise a LOT of people.
Of course, nobody wanted this trade war…
We were fine with the status quo – we felt we had a good thing going with China: we got cheap quality goods – they got money.
Everybody was winning!
However, the deficit between what the US was giving China and what they were willing to buy from us was a bit too large for the President’s liking and he went about changing that arrangement.
Of course, when China pushed back – we knew we were in for a ride…
And quite a few times there – it truly did seem like a roller coaster.
Then the POTUS added something on top of it all…
Tariffs.
Tariffs are nothing more than taxes – and the amount that the President levied against Chinese goods were astronomical.
On just two of the areas Trump put tariffs on – the amount that Chinese goods were being taxed was somewhere to the tune of $32 billion dollars.
That’s not chump change…
And so, in response, China levied their own tariffs on American goods coming into their country.
However, over the past month, negotiations seemed to have thawed and it looks like the US and China are getting a LOT closer to a NEW signed trade agreement than ever before.
If there is one thing you can say about our President – for good or ill – he definitely plays hard ball when it comes to getting the deal he wants.
But it seems that one of the conditions to get a new deal signed between the two countries is the rolling back of the current tariffs.
So, there seemed to be a tentative agreement to roll back the tariffs…
And the market got close to hitting more all-time highs following the news.
However…
Trump has already put a damper on that fire, saying, “They’d like to have a rollback. I haven’t agreed to anything,” he told the throngs of reporters outside of the White House. “China would like to get somewhat of a rollback, not a complete rollback because they know I won’t do it.”
So, who knows WHAT is going to happen?
What we do know is that the market seems to be doing just fine with or without China’s tariffs…
But it would be REALLY awesome if the two countries were able to bring this one home!
The good news is – GorillaTrades subscribers couldn’t care less as to what happens with the trade war…
Our trading matrix ensures that the recommendations we make have the best chance to make money in the market REGARDLESS of what happens in China, Europe, or ANYWHERE else!
However…
There’s really only one way to understand how GorillaTrades truly works.
The gist is simple – we send you an email, you follow the instructions.
We do all the work.
Of course, you can do your own due diligence too, but the instructions in the email should be enough.
I also know that GorillaTrades isn’t for everybody – so if you’d rather keep doing all the work yourself – more power to you.
Either way, keep your eye on the China story…
It’ll be shaping our economic climate until it’s a done deal.
“Life’s like a ball game. You gotta take a swing at whatever comes along before you wake up and find out it’s the ninth inning.” – Martin Goldsmith