U.S. Stock Futures Tumble More Than 500 Points, As Trade ‘War’ Escalates — China Threatens To Pull Out Of Trade Talks

U.S. Stock Futures Tumble More Than 500 Points, As Trade ‘War’ Escalates — China Threatens To Pull Out Of Trade Talks
www.fortunascorner.com
     Overnight, POTUS Trump threatened to raise tariffs on $200B of Chinese imports from 10 percent to 25 percent; and imposing tariffs on an additional $325B of ‘untaxed goods’ — all this coming ahead of this Wednesday’s scheduled resumption of high-level trade negotiations. The resumption of these talks on Wednesday are now in doubt and the U.S. stock market is not waiting. All three major U.S. stock indices are heavily in the red this morning with the DOW down 510 points as I write this short note, the NASDAQ down 181 points; and, the S&P 500 down 54 points pre-market open. Everything is likely to get hit as the ‘baby gets thrown out with the bathwater. So, if you have some cash on the sidelines, you could use today’s selloff to cherry pick and take positions in those blue chip tech companies that were previously too expensive. They will be on sale today. That logic applies if you think that we get a trade deal in the next few weeks to a couple of months. If you have at least a six month investment time horizon, this too shall pass.  In the meantime, gold and precious metals should shine. RCP, fortunascorner.com

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