US stock futures are suffering a continuing hangover after Monday’s 265 Dow point rise. Dow futures are looking at a 300-point decline at the open.
Pundits cite China’s slowing economy. How can these analysts not understand that China’s economy is slowing because of the Trump’s Administration’s tough stance on trade.
The Chinese have for decades relied on such favorable pricing on goods sold in the US there was never a reason to employ proper business processes. Merely loading a ship with iPhones or steel guaranteed big profits. This is the new normal when it comes to Chinese economic growth.
So the tariff crackdown to level the trade playing field will have to run through a few quarters to get year-over-year numbers showing slowing growth to get Wall Street’s attention. The Street is not looking at US firms, which are benefiting from the more balanced trade situation.
The globalists are also playing up a slowing China as being catastrophic for the US economy to get Trump to back off from punishing their investments in Chinese firms.
Playing hardball with China on trade, on stealing technology, on Taiwan are all good tactics to benefit US firms and Americans in general. Don’t tell me China’s economy is more important than the US for world economic growth.
The US drives the world economy and the sooner Wall Street eschews the globalist’s sky is falling narrative, the better for all Americans and US stocks.