https://sg.finance.yahoo.com/news/china-apos-descriptions-trump-xi-041500240.html
Look like the trade tension will escalate after 90 days because both sides have different interpretations of the truce.
Companies will not change their investment decisions based on a 90-day truce. Therefore, nothing will change in the real business world. The only thing that will change is the stock investors' behaviour but this will not affect the companies' earnings. Fundamentally, it is a company's earnings that will affect or support the stock price. Investors react positively to the truce but this is just a knee-jerk reaction as businesses will remain the same.
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https://www.theedgesingapore.com/trade-war-detente-leaves-booby-traps-investors-reuters-breakingviews
Reuters has also given a warning for the detente.
Quote:
Any investor inclined to rush back in would be wise to tread carefully.
End Quote.
That's why I've said there'll be another scary correction of 10%-15% in Feb/Mar.
But armageddon will be averted at the last minute, and US markets will cheong to new highs yet again.
Not so confident about S'pore, China & other Asian markets --- will be damn volatile that's for sure.
US markets may see the top of this 10-yr cyclical bull in Q3 .... high chance of recession in 2020 ... and markets usually start acting badly about 6 months beforehand.
https://sg.finance.yahoo.com/news/trump-apos-description-china-trade-070500811.html
Trump's interpretation is different from the white house's.
We are right about the stock markets.
The stock markets fall today after the knee-jerk reaction.
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