Monday 2 December 2019

US-China trade deal in doubt but “economic growth and bull market coming”

The S&P 500 rose 1 percent last week as investors pinned their hopes on an imminent completion of a phase one trade deal between the US and China.

However, that hope receded a little in the latter part of the week after US President Donald Trump signed legislation supporting Hong Kong protesters on Wednesday.

In addition, China’s Global Times newspaper reported on Sunday that Beijing wants the US to remove existing tariffs as part of the deal, something that the latter have so far resisted agreeing to.

Still, John Tobey noted in his Forbes column that the US economy is looking durable despite risks from the trade war.

Therefore, while many investors are worried about slowing economic growth, Tobey suggested that investors take a contrarian stance and look for opportunites to buy stocks in December.

“The goal is to have a desirable stock portfolio heading into 2020 because economic growth and a bull market are coming,” he said.

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