China Tariff Deadline Looms, Investors Worry

Written by Swiss America

deadline 2636259 640As Tariff Deadline Looms, Investors' Other Worries Fade Away -Wall Street Journal
"Investors are anxiously waiting to see whether a new round of tariffs on Chinese consumer goods takes effect next week, one of the few remaining hurdles for the stock market in 2019....Many analysts had assumed that tariffs on more imports from China, ranging from smartphones to clothing, would be off the table after the U.S. and China reached a tentative truce in mid-October.

But President Trump's comment early last week that he is willing to wait until after next year's presidential election to strike a limited trade deal raised the specter of a new challenge to the U.S. economy....Soothing comments from trade officials convinced some analysts that Mr. Trump's remarks were a negotiating tactic....'Just as easily as markets sell off on one headline and one tweet, they can turn around 10 minutes later,' said Shawn Cruz, manager of trader strategy at TD Ameritrade. 'It's going to drive what investors are going to be doing.'....If the new tariffs start hurting consumers, some investors are wary of another uptick in recession fears. 'The domino effect is scary,' said Keith Buchanan, a portfolio manager at GLOBALT Investments. Mr. Buchanan said the firm has recently increased its investment in gold because the precious metal tends to hold its value when appetite for riskier options wanes."

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