The Trade Deal Fantasy and the Markets
Harry Dent | May 10, 2019 | Markets look to finally be making a much-needed correction, triggered by the U.S.-China trade deal drama. Everyone seems to think a deal is around the corner. Not me. While this trade war hurts them, they have a long-term goal, and they’re prepared to take all the pain in the world to achieve it. I explain what this goal is in today’s video. China has had the fastest three-decade urbanization and infrastructure-building program of any major country in history. They have the Belt & Road Initiative, building major infrastructures throughout Asia, Africa, the Middle East, and even Europe… recreating the Silk Road of old. All of it is with one goal in mind… 
Will China succeed? I don’t think so, and I explain why in the video. WATCH VIDEO » Trending Stories... I recently had dinner with my extended family. Afterwards, my parents mentioned they were surprised at how expensive the meal had been. It was a nice restaurant, but nothing fancy. It worked out to roughly $50 apiece, before tip. As we left, we separately climbed into our newish cars, which all cost more than $40,000.... U.S. markets have had a bad week. After reaching all-time highs recently – the Dow at 26,656.39 on April 23 (not quite new high), the S&P 500 at 2,945.83 on April 30, and the Nasdaq at 8,164 on May 3 – they've spent the last three days in the red. Monday, the Dow shed as... Employment numbers came out last week and showed unemployment at a 50-year low. Average hourly earnings are up 3.2% over the past year. Add in the equity markets at record highs, GDP at 3.2% in the first quarter, and 10-year bonds at 2.5%, and you might be forgiven for thinking we're in economic growth nirvana. But... Smart people are worried about out deficit. They should be. Never mind the chaos around the world (like mass shootings, terrorist bombings, Armageddon marches, etc. ad infinitum), it was recently report that Christine Lagarde, the managing director of the IMF, is "doubly concerned" about the level of global debt. She was speaking at the Milken... Man! They'll need to take me off the plane in a stretcher when I eventually reach San Juan later this weekend. My wife too. She broke her wrist while Down Under with me. This trip to Australia – my favorite country in the world – has been exhilarating and exhausting… and jet lag's a bitch... | 
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