9/26/2018 – A negative day with the Dow Jones down 107 points (-0.40%) and the Nasdaq down 17 points (-0.21%)
The stock market finds itself at an incredibly important juncture. Things are about to move. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here.
Since its origination we have argued that Trump’s trade war was idiotic. He is fighting the symptoms of a much larger problem (FED & Destructive Monetary Policy) by attacking the victim and not the cause. This is equivalent of a cancer patient hanging himself instead of getting chemo.
Mr. Trump is eager to boast about the successes his apparently brilliant trade war has produced. But what about the losers? Let’s take a quick look…..
Foolish Nature of Picking Winners: Trump’s Tariffs Cost Ford $1 Billion
Given there are vastly more users of steel than producers of steel, Trump’s ploy was a piss-poor tradeoff. Any gain to the steel industry is a loss by Ford, GM, and all the other users of steel and aluminum.
Ford ate the cost as did GM, but any ability of the steel producers to hike wages is more than offset by lost profits and less opportunity for manufacturers who use steel to hike wages.
Some small- and medium-sized manufacturers who use steel as an input will undoubtedly go out of business. Consumers will pay more for products.
It is idiotic to see any “win” in this other than for a small number of producers at a huge cost everywhere else.
We couldn’t agree more with the conclusion.
American consumers are about to feel the full force of Trump’s tariffs as prices skyrocket across the board. That will be inflationary, at least for the time being, and will lead to higher interest rates. That will in turn collapse the stock market and the ever so fragile debt depended US Ponzi Economy. A massive deflationary wave will follow.
So, yes, welcome to the WINNING!!!
If you would like to find out exactly when the market will crater, based on our timing and mathematical work, please Click Here.
