The market took a downturn. Again the Administration poured cold water on a trade agreement with China. Ten days ago we had a deal, but no deal. Now word is out that maybe next year. It’s driving the market nuts. Why? We can quantify fundamental economic analysis, but we have little control over geo-political actions that also impacts the market.
This leaves the FED in a conundrum. What are they going to do next. The global economies are slowing in their growth and are in a negative interest rate environment. Low interest rates are great for credit borrowers but terrible for the financial industry. Which way will this go? You tell me? I look forward to a discussion on where all this is going.
