Topics discussed: The last peace treaty in this trade war was supposed to be simple enough: The Chinese agreed to buy more agriculture from the United States and the U.S. agreed to lay off Huawei. Not even that was able to last. The intense stock market volatility of the last week is not the most problematic aspect of the trade war from an economic standpoint. We will focus our analysis on:
(1) The macroeconomic impact on U.S. growth, and
(2) The currency implications for global markets
The outlook for U.S. economic growth is falling apart under the pressures of this trade war. Focusing on the far right of this chart, you see the Business Investment aspect of GDP growth (blue line) accelerating significantly after President Trump was elected, in line with the CEO survey on planned capital expenditures (red line). And then you see both collapsing together in response to trade tensions.
Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com
David is the Founder, Managing Partner, and the Chief Investment Officer of The Bahnsen Group.
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