Written by Rick Ackerman, Rick’s Picks
Odds Improving for a Deal with China
We are going to find out soon whether Mr. Art of the Deal can bring China around on trade issues. It’s encouraging that Trump has already turned what had begun to look like a full-blown trade war with Europe into a success story for global business. However, it remains to be seen whether he can extract concessions from the hardball players in Beijing.
Please share this article – Go to very top of page, right hand side, for social media buttons.
For the time being, the news media have ratcheted down their Trump Derangement Syndrome sufficiently to report more honestly on what incorrigible scumbags the Chinese are in all things having to do with trade. We are dealing with one of the most corrupt governments on Earth, after all, and it is hardly unreasonable for Trump to demand that they show some respect for, at the very least, intellectual property rights.
The Next Big Rally
His odds of success have taken a turn toward the better recently with the run on China’s currency and stock market. Bears have been piling up bets against both, and it’s only a matter of time before the government is forced to do something about it. Up till now, official policy has been to allow the currency to drift lower in order to compensate for the effects of higher tariffs on Chinese goods. This strategy cannot work over the long haul, however, because Trump can raise tariffs much quicker than China can devalue its currency. Bottom line: Look for China to blink first. If and when this happens, it’s going to kick the U.S. stock market into a huge rally.
If you don’t subscribe to Rick’s Picks, just click here for a free two-week trial. It will give you instant access not only to the chat room, but to actionable ‘touts’, intraday alerts, ‘jackpot’ bets using super-leveraged options and impromptu ‘requests’ sessions online.