Friday, June 8, 2018

Nobody Wants A Trade War

The stock market is down premarket thanks to a crossfire of tariff threats ahead of the g-7 meeting today.  The US announced tariffs and the receiving countries responded.

If anybody's ever noticed this is President Trump's modus operendi.  He announces hard initial strikes but follows with ingratiated, softer negotiations.

This style of negotiation hints that Trump's G-7 tariff threats hope to lay the groundwork for countries to reach an agreement today and tomorrow.

Our Guess: Trump Wants To Come Away With Something

President Trump's signature negotiating tactic (Strike hard first and negotiate softly after) helped him walk away with something from China just recently.  It helped Trump close a tax deal in the US.

Today's 'tariffs everywhere' threats from President Trump probably never come to fruition but rather gets some gesture token of appeasement from the US' G-7 allies.

If so, while the market looks down premarket from here, any agreement can jump the market after a weekend of negotiations.

Double Jump With North Korea Next Week

If correct about G-7 you could get a double jump in the market thanks to a potential peace accord with North Korea next week.

As we wrote yesterday, US and China approaching trade solidarity can pressure North Korea into feeling isolated creating a better chance for a peace deal.

That, along with a G-7 deal could be great for markets next week.


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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless. Model portfolio trades and positions are hypothetical to be used for directional analysis and ratings purposes.

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