This is ultra bearish for the entire markets. I can see why indexes are breaking down through moving averages. I might end up moving money to SPXS instead of staying cash if the bears flood the markets. Real risk of us heading into bear market with a corrective recession. Hope everyone is off debt and, if now, that you have fixed your interest rates.
The Chinese hold the balance of power here holding so much US currency, debt and gold.
The Trump administration is imposing tariffs on some $50B of Chinese goods imports, the first shot in what could become a contentious global trade war.
President Trump just signed the section 301 action. "This is the first of many," Trump says.
"It could be about $60B," Trump says, but "that's really just a fraction of what we're talking about." A 30-day comment period from business could have an effect on the ultimate figure. He's asking China to immediately reduce the trade surplus by $100B.
"I view them as a friend; I have great respect for President Xi," Trump says. But we have a trade deficit of $504B, depending on how you calculate it, he adds.
With the U.S. importing about $500B in goods from China annually, it amounts to a tariff on just 10% of items the U.S. buys rather than a 10% across-the-board tariff.
The administration is acting due to practices it says amounts to years of stealing the intellectual property of American companies.
China has said it was prepared to retaliate with "necessary measures."
The U.S. has a preliminary list of more than 1,000 products that can be targeted, and will also look to bring licensing complaints to the World Trade Organization.
The Dow is down 1.5%; S&P 500 -1.2%. Nasdaq is down 1.7%.