Copied from my earlier post on another HC thread …
Back peddling from the White House just a day after deliberately (impetuously?) riling markets seems sure to give markets some relief for 3-5 days (and possibly raise questions again about market manipulation).
But imo, China will not roll over easily after being so roundly and publicly humiliated by trade war rhetoric.
Ditto, for essentially the same reasons, countries like Japan, India and Korea will imo play a longer game with Trump in their tariff negotiations so that White House announcements of “tremendous progress” will look hollow and questionable.
The long n short of this is I doubt markets are going to make substantial gains in the mid term yet.
Imo, the only way markets can break new highs is for Trump’s tariffs to be all but wound back … creating the next problem for him about where the money for promised tax cuts will come from.
