WASHINGTON – President Donald Trump and Chinese Vice Premier Liu signed the long awaited Phase I US-China trade deal Wednesday at the White House. But, of course, House Speaker Nancy Pelosi chose the same time window to rain on the President’s international trade parade by sending her bogus impeachment articles to the Senate, as CNBC duly noted Wednesday morning.
“The signing comes after House Speaker Nancy Pelosi announced seven impeachment mangers for the president’s looming trial in the Senate, expected to start on Tuesday.”
Attaway, Dems, support your president so we can get a better trade deal! Just like you supported him for terminating one of the world’s longest living and top terrorists. Taken as a whole, Congressional Democrats aren’t worth anywhere near the money America’s taxpayers are paying them. What do they even do for us beside nothing at all.
New US-China trade deal, Phase I, is finally signed by both countries
But back to what’s actually happening today. Namely, the new Phase I trade deal. It’s a first step in – hopefully – rearranging The US-China trade imbalance. In addition, it takes tentative steps toward cutting down on China’s runaway US technology theft. That’s how the Chinese government has benefited for decades from US technology and trade secrets without compensating America’s corporate victims. They’ve helped themselves to the technology for free by making it a major cost for US companies of doing business in China. Our companies pay for the R&D, then China gets to steal it. That may now be partially coming to an end. Although Communist countries don’t have the best track record when it comes to sticking to the terms of any agreement.
On a more positve note, US farmers in particular will benefit from this new trade deal, and soon. Farmers are a big part of the Trump constituency. That’s why the canny Chi-coms targeted US farmers with punishing tariffs in order to undermine Trump’s political wiggle room to negotiate a deal in America’s favor. Back to CNBC for key details on the agreement.
“Under the pact, Washington agreed to cancel some new tariffs and reduce others, and China said it would buy more U.S. agricultural products. It also includes some reforms to China’s policies on intellectual property and technology transfer.”
Wednesday Wall Street reaction to trade deal: Meh…
After meandering about in negative territory Tuesday night and Wednesday morning, Wall Street futures didn’t seem too enthusiastic about the deal, given that the MSM and the business and technology media have been pooh-poohing an agreement they hadn’t yet seen. But customers, funds and investment banks gave the agreement a modest thumbs up after stocks opened this morning, boosting major averages by up to half a percentage point.
This isn’t a barn-burning rally, mainly because the long-delayed partial agreement, while positive, isn’t exactly spectacular. (Also because the market is almost certainly overbought.) Wall Street gurus seem positive on the accord. But they haven’t pulled out the cigars and champagne yet as a CNBC update notes.
Dollars and cents
“Stocks rose on Wednesday as the U.S. and China signed a highly anticipated phase one trade agreement while the corporate earnings season picked up steam.
“The Dow Jones Industrial Average traded 113 points higher, or 0.4%. The S&P 500 gained 0.2% while the Nasdaq Composite advanced 0.1%. The major averages also reached record levels on Wednesday….
“Also helping sentiment Wednesday morning were comments from White House economic advisor Larry Kudlow, who said the Trump administration would unveil more tax cuts later this year….
“Investors had been eagerly awaiting the signing of the so-called phase one trade agreement as the conflict between the world’s largest economies has dragged on for nearly two years.
“‘The risk in the market is that the trade situation deteriorates, not that it stays the way it is,’ said Willie Deliwche, investment strategist at Baird. ‘If it’s improving, then by definition it’s not deteriorating and that’s a good thing.’
“To be sure, the deal does not remove existing U.S. tariffs on Chinese imports and leaves questions as to how the terms of the agreement will be enforced.”
Enter the Very Fake news media spin
In general, I’d wager that the fake-news media gives a passing mention of this trade deal – a small but important administration victory for American workers and particularly for American farmers. Instead, we’ll get wall-to-wall, frantic 24/7 coverage of this country’s most ludicrous impeachment trial, which is now apparently set to begin next Tuesday and last for… well, who knows.
The outcome is likely clear. Unless the Deep State has enough dirt on enough GOP Senators to make them throw Trump out of 1600 Pennsylvania Avenue, President Trump will be acquitted. The House Democrats will reignite their permanent Election 2016 Temper Tantrum and – irony of ironies – will accuse the Senate of conducting a bogus impeachment trial.
Living in The Swamp for 50 years gives you some perspective
I’ve lived in the DC Metro area now for roughly half a century, and I’ve never seen a sorrier excuse for politicians than the Democrats currently offer, particularly in the House. These people should be thrown out of power and kept out of power until they – or likely their successors – learn how to act like sober and responsible human beings.
Sadly, that likely won’t happen until the largely urban, “educated” constituencies that elect these clowns for life decide to wake up and encounter reality. And, sadly, these “educated” buffoons – mostly virtue-signaling closet Communists – are the least likely voters in the country to grow up, get responsible, and act like adults when they go to the polls this fall.
True, this observation has nothing directly to do with the stock market. But in a way, it does. Because the sore losers now dominating America’s socialist party want only power, they are willing to try to overthrow a legitimately elected president and, worse, prevent anyone that’s not them to be elected president in the future. If given any measure of power, these people will destroy the brilliant, vital economy, including today’s trade deal, that Trump has been assembling in just short of 3 years’ time. And they’ll destroy it in less time than it took Trump to build it.
What if these deranged individuals keep the House? Then take the Senate and oust Trump in November? Answer: They’ll make Obama’s first two years in the White House will look like Sandbox 101. What if traders and investors decide a scenario like this one might really occur after Election 2020? They could very well begin bailing from the market wholesale.
Managing portfolios in a constantly changing socio-political business climate
It’s this that normal investors will need to consider in medium to long-range planning, with regard to their investment future. We’ll keep an eye on things here, from our vantage point on the edge of The Swamp. But look for things to start getting wild when the Impeachment Circus commences in the US Senate Chambers next week.
And don’t be afraid to sell if things look bad. I think they’ll look more stupid than bad. But the way the fake media spins things, you never know how public opinion may move. And as it moves, so, too, will Mr Market. So don’t be afraid to punch that “Sell” button, at least selectively. Any investor who paid attention in 2019 made a nice chunk of coin investing in stocks. On paper.
Assuming you’re mostly long, you can only book an oversized profit if you sell. Resolve not to let the Socialists on the Hill and their media sycophants take those profits away.
– Headline image: China’s Vice Premier Liu, President Trump sign new Phase I US-China trade deal at White House,
Jan. 15, 2020. Screen grab of Fox video report.