TRUMP’S Next Step Could Be His LAST!
So far so good – President Trump has imposed tariffs on China, and Wall Street did not collapse.
In fact, we saw a rally following the last round of them. U.S. companies are reporting record earnings and incredible results, yet stocks refuse to break out.
The main reason for this is that investors are watching now, in light of an unknown future.
Yesterday, I showed you one event that is certain – the legalization of cannabis in Canada. We covered a newly-listed company, Pure Global Cannabis, which has just obtained their U.S. symbol, (OTC: PRCNF), so U.S.-based investors can now begin to execute trades. It is still quite challenging, but doable.
But, while this catalyst (legalization of cannabis) is a done deal, the entire investment community is on the fence right now, due to protectionist policies imposed by the U.S. administration, not knowing how these will tilt the odds.
Yes, the American middle-class has been robbed by globalization, which has diluted their wages, stalled their growth, and moved their cheese, but it has helped the global economy, overall, grow leaps and bounds over the past 30 years.
Trump, in his noble quest to Make America Great Again, might be stirring it to disaster, by being well-intended, but poorly equipped to bring about change.
As the leading economic power in the world, the U.S. cannot afford to close its doors to the world.
This is a risky bet, a negotiation tool, which might backfire on America.
At this point, nothing irreversible has happened, but it can escalate from this point on.
Larry Fink is the chairman and CEO of BlackRock, the largest money-management firm in the world with more than $6 trillion in assets under management.
He was instrumental in the creation and development of the mortgage-backed security market.
In 1988, Fink co-founded BlackRock and became its CEO. He has sound the alarm on tariffs, going forward.
Ray Dalio has opposed them on numerous occasions.
A trade war is political, but it is also an economic one.
The U.S. can’t afford to lose its stock market. With a quarter of the country hitting retirement and banking on 401K plans to fund the golden years, 80 million boomers need a booming S&P 500.
If the U.S. equities market collapses once more, the social ramifications will be enormous.
The next few weeks will determine where the global community is headed.
If this ends well, a major relief rally will pursue. If it goes south, run for the hills.
Best Regards,
Tom Beck
Research Partner, PortfolioWealthGlobal.com
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