By Teeka Tiwari August 1, 2019
When you’ve been a professional investor for as long as I have, you know it’s important to recognize what the market thinks—even if it’s wrong in the long run.
And right now, the market is biting its nails again about the trade war.
President Trump blasted China on Tuesday, saying it continues to “rip off” America. He’s upset because China is unwilling to buy U.S. agricultural products.
The president’s tweets came right before his trade delegation arrived in Shanghai for a new round of trade talks. And the market is on edge.
But this isn’t the first time I’ve seen the market fall on trade war fears.
Back in the second half of 2015, the Chinese yuan dropped 10% against the dollar. Politicians accused China of manipulating its currency—and even said we should sanction the country.
Fears rippled through the market about a slowdown in trade. Despite a healthy economy at the time, the market tanked 15%… recovered… and then tanked 15% again.