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2 Aug 2019

POLICY BY MARKET MOVES

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Post by MoneyRadio Staff

——On Fox Business Network’s “Bulls and Bears’ last night, I stated businesses don’t even know if the president changes his mind on the new China tariffs by September 1st as he changes his mind on a whim. We also know he changes his mind depending on market moves.—–
—–We were going to wait to write this weekend about the debates and about these new tariffs but we just received this:—–
—–Senior Trump administration official: “President Trump is open to delaying tariffs if China takes positive action, but prior talks did not go “well enough!”—–
—–This coming the next day after more proposed tariffs. Sybil anyone?—–
—–Futures rallied off of this but heading back down. This tells us what we already knew. Markets go down…no tariffs. Markets hold up or go up…hmmm, let’s propose new tariffs. Kids, this is nuts. Setting important policy based on markets is plain nuts. Eventually, markets are going to stick the middle finger back at all this uncertainty. Leave no doubt the president saw the market reverse down over 500 points yesterday and told his people to go out and make this statement in order to calm markets. Leave no doubt if markets continue to swoon, we will get a “just kidding” before September 1st in order to stop the bleeding. In fact, we guarantee you that if markets continue lower, he will pivot for the tenth time. The president did it with European auto tariffs. He did it with Mexico tariffs. He has done it several times with new China tariffs. But we think the market may be getting weary of all this nonsense.—–
——But that’s Wall Street. What do you tell the thousands of companies representing the thousands of products. They cannot plan on supply. They cannot plan on demand. They cannot plan on expense. They cannot plan on profit. They cannot plan on man power. They cannot plan on anything. In fact, the only thing they can plan on is the vertigo they are getting from these continued market-induced flip-flops.—–
—–For a man that says he is all in with the businesses of this country, he is now doing a great job of adding massive unnecessary uncertainty onto the shoulders of the businesses of this country. And the next tweet is?—–