According to President Trump he was able to achieve some sort of a major trade war victory against the EU. The stock market rallied and everything was, as Janet Yellen used to say, peachy.
Before you come to the same conclusion, consider the following…..
Trump and Juncker Supposedly Agree to Trade Deal: Lies All Around
Lie When It’s Serious
Ahead of the meeting, Juncker said it was not his intent to work out a deal. Now he says it was his intention all along.
In case you forgot, please consider the most honest thing Juncker ever said: “When it becomes serious you have to lie.”
So, is Juncker lying today or was he lying two days ago?
The US is not going to supply the EU with LNG. That is a direct and blatant lie by Trump. The EU will get natural gas from Russia via Nordstream2. US LNG would be far more costly.
So there are lies all around.
Meaningless Agreement
As I have pointed out, it will take the EU and the US a decade to work out a real agreement. Juncker by himself cannot promise anything. All 27 nations in the EU have to ratify trade deals.
The EU can add retaliatory tariffs without every nation agreeing and now it can remove them.
Winning?
Is this winning?
I highly encourage you to read the whole thing, but I believe Mish is dead on the money here.
The only positive from all of the above is de-escalation of Trump’s trade war. At least for the time being.
Yet, none of that matters. The stock market has a clear cyclical path ahead of itself and no matter what Mr. Trump does, things will play out as they should.
If you would like to find out what the stock market will do next, based on our timing and mathematical work, in both price and time, please Click Here.
