This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
Otherwise, enjoy the column!
Subscribe to the Monster Stock Market Commentary and join the 2,378 subscribers getting it for FREE every day!
2019 is nearly here, and that means it is time to roll out my ten predictions for the new year. As I did last year, I will start with number 10 and work our way up to number 1 over the last month of 2018. Enjoy!
Prediction #2 – U.S. and China Settle their Trade Dispute
The trade war between the U.S. and China has raged for nearly a year, and the two sides will likely agree on a deal before the March 1 deadline. With equity markets in the U.S. and China reeling on fears of an economic slowdown, China will finally agrees to some of the U.S.’s demands. China agrees to buy more agriculture goods from the U.S. Meanwhile, China will further open its markets to allow U.S. companies into the economy without having to hand over intellectual property.
In exchange, the U.S. will drop its tariffs, and direct investment by U.S. private companies into China will once again resume. Currently, the uncertainty and threat of a further escalation of the trade war have slowed direct investments into the country.
Global Recession Avoided
With the trade war now over, the global economy begins to pick once again up, and both sides see a meaningful jump in their economies, avoiding a global recession.
President Trump is so excited about this deal he invites President Xi to Mara Largo for a week to lay in the sun and get in some rounds of golf.
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.
predicitions, trade war, 2019, u.s., china