The “Phase One” Trade Agreement will be limited in scope and duration, according to Professor Stephen Nagy. He points out in a recent piece that this deal will result in postponing tariff increases and agree to import more agricultural goods from the US. But he goes on to point out that the excitement will soon fade as details of these new deal are revealed. And it is now obvious (from our research) that global investors and more specifically, hedge funds have been buying shares for several reasons but the key reason is that they are strongly invested in the idea of a trade deal before the end of 2019.
Stephen discusses POTUS, as well as the internal pressures within the White House as the President is being influenced and pressured from all sides. Clearly there will be some excitement when a deal is on the table but the rally in equity markets might be short-lived and as our team points out, excitement could fade. Equity markets will surely see excessive volatility – we see opportunities. More to come.