Where is the market heading now with trade tensions esscalating?
Just comparing the United States picture to the rest of the Global economies to keep things in perspective. Also, keep in mind that China is the only country in the world except Russia that has a closed economy that charges companies tariff's to sell items and has a communist dictatorship. Here we go,looking at Japan which has had negative interest rates for 3 1/2 years and what has it done nothing. Recently,Europe has joined the negative interest rate club and there economy is doing very poorly.In the United States consumer confidence is up, retail sales are up, employment is strong, consumer net worth is at record levels and the economy is growing at trend. Also, corporate profits are decent and if corporate America was pessimistic they would not be buying back all the stock they been buying back. Rates are already low and going lower because global interest rates are going lower to stimulate economies and in many cases going negative. Just to be clear Negative interest rates are destructive to the system.The market is OK now, and the market is not focused on a change in leadership. I think America has been great and I think the performance of the economy has been terrific. I also believe that all the dissatisfaction with capitalism has been very misplaced. All of the current talk about free stuff is very destructive. Capitalism is by its very nature an unequal distribution of wealth that is why risk takers are rewarded! Socialism has one thing in common everyone is equal except the elites and everyone ends up in poverty.We are currently in an abnormal world, you are not in touch, we have 17 Trillion dollars of negative interest rates globally.Economic weakness in manufacturing and industrial companies is due to the tariff talk and it is making companies cut back on capital spending because of the economic uncertainty. The stock market is dictating Fed policy, lower rates will eventually cause problems. The current rate cuts have pushed the investor up the risk curve to gain yield.John Verducci 111