Prediction #2 – U.S. and China Settle their Trade Dispute

Prediction #2 – U.S. and China Settle their Trade Dispute

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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.

Tariff’s Over

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.

Photo Credit Via Flickr

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


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