Trump's trade war with China

Trump's trade war with China just took a turn for the worst.

Trump said Thursday of last week that the U.S. is putting 10% tariffs on another $300 billion worth of Chinese goods, effective Sept. 1. His announcement resulted in stocks worst week of 2019 amid renewed investor fears about his trade dispute with China.

That was last week.

This week, China retaliated. China, which has historically controlled its currency, the yuan, allowed it to fall on Monday to its lowest level against the dollar in more than a decade.

"Stocks fell sharply Monday as a trade war between the world’s largest economies intensified with China retaliating against President Donald Trump’s latest move. The move continues a sell-off that began last week when President Trump ordered new tariffs on the rest of Chinese goods."

“Now we have a trade situation that is going off the rails as the side effects multiply due to the ramping up of the use of tariffs and we are only further apart from any resolution with the Chinese,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “The policy of using tariffs as a tool to address our legitimate beefs with the Chinese has failed miserably.”

https://www.cnbc.com/2019/08/05/us-futures-amid-trade-turmoil-between-beijing-and-washington.html

Millions of Americans permanently lost millions of dollars in their savings plans last week and now today.

Last week was the worst week of the year, now the worst day.

"Goldman Sachs warned clients on Monday that a trade agreement "now looks far off" because officials in Washington and Beijing are "taking a harder line."

"The Wall Street firm said the most likely outcome is that no deal will be reached before the 2020 election and that President Donald Trump's threatened 10% tariffs on $300 billion of US goods will remain in place on Election Day."

https://www.cnn.com/2019/08/06/business/goldman-sachs-trade-war-2020-election/index.html

Thank you, Mr. President. Have you considered resigning?

 

You’re repeating old news, stocks took a slight hit yesterday but bounced way back today.

 

Hang in there Sandy, only 5-1/2 more years to go. Tariffs are just the start.

 

It was not allowed to fall. It was a conscious Chinese decision.

Permanently? Stock markets go down and stock markets go up.

The reason being that China hopes a democrat will win and will not have the will to do anything about the Chinese trade policies.

 

What in the world do you mean "Millions of Americans permanently lost millions of dollars in their savings plans last week and now today."
Where do you come up with the blather?

 

Voices.

 

767 points on the Dow is a "slight hit???"

Yeah, stocks were on sale today at bargain basement prices. The Dow was up 312 points.

This is just the start we are in it for the long hall, probably until the 2020 elections. The Chinese leadership is very patient, and they know Trump is extremely unpopular and getting more so.

 

I will make this as simple as I can. It is 4th grade math. Do you think you are up for this?

An IRA has $100,000 dollars in it. Because of Trump's tariffs the account loses $5,000 just as you lost money in your savings plan last week and yesterday if your account is in stocks. Anyway, so now the account is down to $95,000. Follow me so far?

Due to market changes, at some point the account gains $5,000. So now the account is back up to $100,000. So, the account didn't lose money. Right?

WRONG! If the account had not lost the money in the first place, when market changes caused it to gain $5,000, the account would have $105,000 in it, not $100,000. The 5,000 lost because of Trump is permanent.

Sorry about that. I mean it. I lost, too, but I'm mostly in bonds. Too old to gamble.

Now I know what you are going to say. You are going to say that is ridiculous or something similar. But you won't be able to tell me why the 4th grade math is ridiculous or something similar. That's because the 4th grade math is right on.

 

Jesus Sandy, remind me never to ask you for any financial help. We're you one of those that bailed out at dow 10,000?
Nothing is permanent until it is sold.

 

you are assuming that the correction rebound was for some other purpose than investors just getting back in

 

Yes...it bounced back. You apparently weren’t paying attention to yesterday

 

They didn’t bounce “way back”. They went up slightly.

And that, only because China did not immediately retaliate against Trump’s declaration of China as a currency manipulator.

Which still leaves the market considerably below where it was two weeks ago.

 

Let me make this shorter and clearer for you, Trump's trade war with China is an absolute necessity, unless of course you're in favor of a Chinese dominated century.

 

Seems like the shine has come off the magic Trump economy. So, what again did the trillion dollar deficits buy us? No gain in the stock market since the tax cuts. GDP growth pretty much in line what it was before the tax cuts, no magic 4, 5, or even 6% growth numbers, like Trump predicted would be possible. At the same time, private debt at record highs, not boding well for the next debt-induced downturn. If Trump is lucky, the economy will muddle through for another year. If not, his chances of re-election look poor.

 

Not sure what you are talking about...here's the Dow Jones chart: https://www.google.com/search?tbm=f...=1366&bih=608#scso=_4sBKXaicHMOvggfJso_ACA6:0

China did immediately retaliate by devaluing their currency once again.

 

TomFitz was correct, after losing 1500 points in 5 days, the Dow went up slightly by roughly 300 points yesterday. That's not "bouncing back".

https://www.google.com/search?tbm=f...cHMOvggfJso_ACA6:0,_9MRKXb-yComQ_QarmrSQDg6:0

 

That was the link I posted as well...as the chart highlights there has been very little change in the Dow. It's doing quite well.

China's policies of continuing to devalue their currency and cheat the playing field must be addressed. It's an issue that has been going on for years. Even Obama, attempted to address them, and his former officials have discussed them: https://www.cnbc.com/2018/04/09/tru...egitimate-obama-trade-rep-michael-froman.html

https://www.latimes.com/business/la-xpm-2012-jan-26-la-fi-obama-china-20120126-story.html

 

The 700 point drop was about a 3% drop. What do the wealthy do when stocks drop, they buy. What do fools do when the Market drops, they sell. History shows us the wealthy make money and the fools lose money. So many people comment on the market when they don't know jack about the Market or it's history.
Same with our trading partners. The Trump haters are criticizing Trump for tariffs yet they don't know jack about the trading terms we have been under for years and years. Trump says the USA has been ripped off for years and now he is only after fair trade. Why else would Trump set tariffs? Use some common sense and ignore the "sky is falling media" and the "recession is right around the corner liberals". Don't be a Trump hater just to be a Trump hater. Don't let anyone think for you.

 

Including last week, it was a 6% drop. I am sure you would have been as forgiving if Obama had caused this. Thinking about it, the RW probably would have called him a business hating commie.

 

The technical term is "Dead Cat Bounce"

 

The Market reacts to many factors because many in the market buy and sell on their emotions. Safe money and old money stays in the Market and enjoys the roller coaster ride as they make money in the long run.

 

That is correct. Let's keep it in mind next time when Trump and fans claim victory after the market rises.

 

That's a misnomer - the stuff that mutual fund peddlers like to pedal. "just buy and hold - were in it for the long term".

The fact of the matter is that there are times when it is really bad to be in the markets - and holding is the worst thing to do. During the 1929 Crash the Dow lost something like 95% of its value and took something like 25 years to get to its previous high.

This does not tell the whole story though. Had you held - you would not have regained back your losses in 25 years as many of the companies went under - went to ZERO. Others replaced such that the index did not reflect the value of the original companies and so does not reflect what is being claimed by these investment advisers. .

Up until a couple of years ago there was a total of one (1) company of the original 30 dow components. That company was GE - Now GE is no longer a Dow component.

I remember the old commercials - think it was Bear Sterns "We make money the old fashion way - We Earn It" - Bear Sterns went bankrupt.

 

You are so predictable.

I am not assuming any such thing. Look at the math again.

Market changes can be anything. Many times, like yesterday, the 300+ spurt was caused by stocks being on sale.

The market is down again today. Trump's trade war with China will be long and nasty, and we all permanently lose more of our savings.

"Nothing is permanent until it is sold." That argument is made to counter selling stocks because of a downward trend. It has nothing to do with loss of principle, which is what I am talking about.

Look at the math again, post 8.

 

Sandy. Thanks for the economic lesson, thank god you were never a teacher of instructor of any kind. Oop's the market just went down another 2 points. More of your money PERMANENTLY vanished forever.
Thanks for the laughs.