in the trade war with China,and that it is only a matter of time,
before China is forced because of economic pressures to save face
,and make notable concessions to break the current deadlock,between the two superpowers,
thus in turn handing the United States, and the administration, the most important tariff victory possible.
Contrary opinion begs for a different result.
I am extremely on China,
and think their steel resolve and determination will ultimately prevail
in the new "economic war' being fought between the two nations.
China's stock market thus, could be on the cusp of a thin air breakout,
to the upside, that once it begins, will only accelerate in magnitude.
In order to capitalize on this potential major upside breakout,
that I see coming in the Chinese market
I am using Direxion's YINN , the 3 X China .
You can also look equally at I Shares FXI
China's Large Cap Stock , with extraordinary institutional liquidity.
Sometimes in life, the contrary play
becomes so completely obvious...that it's almost painful to reveal it.
That's an excellent point.
It has been an issue in the past.
I disagree with the notion that the United States has any advantage over China regarding the trade war. China, as a communistic country. has the ability to economically micro-adjust and severely devalue their currency - something the United States cannot do. Altering supply chains away from China is far easier said than done.
Further, Trump is starting to feel the heat at home as his constant threat of tariffs is beginning to cause uncertainty amongst investors. As a result he is hoping that Xi Jinping meets with him for a deal at the G20 summit but he has not agreed to this and has recently stated he vows to fight to the end.
The latest trade deal Trump put on the table is basically citing China cannot be a communist country which simply will not and will never happen (and also why China rejected it).
I give the overall edge, especially considering a soon-to-be election for Trump, to China - hands-down.
That being said I am overall bullish on China as well but with continued volatility although trending more upwards. Conversely, I am close-to bearish for the United States unless there are Fed cuts in June (unlikely) and a deal with China before July 1 (also unlikely).
Thank you for your very well thought input here. Its greatly appreciated.
I think the ultimate end game trade could be bullish China, bearish US.
But just to whisper that idea could have consequences that the free world is not prepared to deal with, or to accept.
China is Accumulating Gold reserves
as fast as possible right now.