Making Sense of the
U.S.-China Trade War | The trade war has been in the spotlight since Sunday, when President Trump tweeted about the Chinese and trade tariffs. Those 280 characters sent world markets into a tizzy! Rodney wrote to Boom & Bust subscribers on Monday, asking: “Is Trump really frustrated with the pace of trade negotiations, or just putting his thumb in the eye of the Chinese? Will he increase the tariffs on Friday, or change his mind at the last minute? “That’s the beauty and horror of the Trump show... No one knows. I’m not even sure he knows.” Trump’s tweets sent equities into a tailspin and sent the oil markets running for cover. They made the recent rosy employment picture seem like ancient news – and for a brief moment, took attention away from Uber’s IPO. Rodney continued, “The carnage might not last if the president reverses course, but what if he doesn’t?” Well, he hasn’t. As of 12:01 a.m. on Friday morning, tariffs on $200 billion worth of goods increased from 10% to 25%. They’ll affect more than 5,700 import categories, and your wallet. Yet U.S. markets remained relatively steady at open yesterday morning. The pre-hike jitters seemed a lot worse than the actual bite. And Asian markets soared, with the Shanghai Composite advancing 3% (it’s best one-day percentage gain since March) and the Shenzhen Composite climbing more than 3.8% before settling back down. While a 25% tariff on $575 billion worth of goods amounts to $143 billion in new tax revenue to the U.S. government, which will at least put a bit of a dent in the $950 billion-dollar deficit, it’s going to negatively affect an already slowing global economy. On Wednesday, Harry explained one of the biggest headwinds the world is facing besides this trade war. In the end, we’ll have to shell out a bit more as consumers because of Trump’s negotiating tactics, but they also may yield a better trade deal. And along the way, we might also be able to buy some great stocks at better prices before the markets rebound. The greatest threat to your retirement this year According to Harvard educated economist, Harry Dent, millions of hard working Americans are about to have their retirement dreams destroyed. It all has to do with a hidden crisis silently spreading across America… one that could cut the value of your greatest asset in HALF! Click here to find out what it is and what |
This Week in Economy & Markets...  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...
 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...
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