Ep. 108B – Recession Fears + Global Stimulus

The Kapital News
The Kapital News
Ep. 108B - Recession Fears + Global Stimulus

Only a few days ago the US equity markets suffered their worst day of 2019 with the Dow losing 800 points. Fast-forward only a few days and all of a sudden fears of recession no longer seem to exist and all is right in the world. This is of course a bunch of spin, nonsense, and headline news, but it is predicated on the hopes that countries around the world will begin to embark on stimulus measures. You know it’s bad when the German government is getting ready to abandon their balanced-budget and go on a debt binge in the hopes of reviving their economy. China is expected to expand upon their stimulus measures. The ECB is getting ready for next month’s policy meeting to lower interest rates even further into negative territory, and they may even hint at or start another round of their QE. Meanwhile here in the US, the President is once again calling on the Federal Reserve to cut interest rates by 100 basis points and to begin another round of QE. The President is also making more concessions to China – delaying tariffs, removing more products from the list that were supposed to be subject to tariffs, and even expanding the window in which US companies can continue to sale to the “national-security” threat of Chinese telecom giant, Huawei. Is it a national-security threat or isn’t it? Are we in a hurry to land a deal or aren’t we? It appears that the President is negotiating with himself as he escalates and de-escalates the trade war all on his own and China gives up nothing in return and is still threatening retaliation nonetheless. Once the markets are forced to examine the data under-the-hood, they’re not going to like what they see and it won’t be pretty. If you have to simulate – you are not strong. Stay diversified, stay vigilant, and stay with The Kapital News. #WakeUpAmerica #TradeWars #Recession #Economy #EndTheFed #Politics #Investing #FireNavarro

Join the discussion...