China and U.S. Saber Rattling on Trade

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The key proposals of the China-U.S. trade deal are intended to protect U.S. intellectual property rights and trade secrets. There are certainly many more aspects of the deal but these are the ones the United States considers non-negotiable. This hasn’t been about trade in soybeans for sure. Free trade is essential to world prosperity but theft of a business’s property is not free trade. The lack of agreement looks like another round of tariffs to the tune of $325 billion: this is international poker, creating unsettling uncertainty for investors. However, China has the weaker hand and the saber rattling may be an opportunity to “buy low.” The market is susceptible to a correction going into the weekend, but keep in mind that this looks as if it may turn out to be another “storm before the calm” led by the astounding fundamentals in the economy we have witnessed to date.

Please review Voya Global Perspective’s 2019 forecast “The Storm before the Calm.”

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