This is s expected – now the midterms are safely behind him. The New York Times headline blared yesterday; “US inks trade deal with Canada, Mexico”; today Bloomberg informs us of a 90-day “truce” with China over their looming trade war.
On balance, this is net positive for the global economy. I’ve never for 1 second bought into the notion Mr. Trump is anti-trade. He’s a billionaire with operations all over the world; he’s as pro trade as anyone. His rhetoric on the campaign trail is red meat for union supporters who buy into his “foreigners are the problem” myth. Ignore what he says; watch what the man does.
Equities are wobbly as central bankers’ benevolence is winding down. Merriment on trade can only help; the real question heading into 2019 is will see major across-the-board tax cuts here & abroad. I’ve seen some economists predict China will kickoff a big tax break & it will create a spillover effect elsewhere. If this movement has legs it could propel or at least protect stocks as rates continue to rise.
Cryptos need all the help they can get so a turnaround in equities shouldn’t hurt. The tag-along phenomena is something to monitor. I suspect President Trump – the Trade Promoter in Chief – is just getting started.