THE tariffs imposed by the United States and China on goods being traded between both countries is something most people have been expecting but dreading.
The US decided to impose tariff duties on US$60bil worth of imports from China and China retaliated by slapping extra tariffs on US$3bil worth of goods brought into the country.
The action by both countries slammed stock markets yesterday. History has shown that a trade war is a lose-lose situation for countries engaged in such destructive activities and by estimates, it will shave global growth into the foreseeable future.
That amount is, however, small. Just a minuscule percentage will be lost by both the US and China but the worry is reciprocative action that follows. Should the US and China deepen the tariff and duties impose on goods shipped between both countries, then that will have a lingering and possibly longer-lasting impact on global trade.
I am of opinion that the recent sell-off of stocks in the US was due to the fact that many events impacting the stock market happened in March at once. They include sell-off of Facebook shares, Trump steel tariffs, a trade war between China and the US and a rate hike in the US.
I don't think t more events impacting the stock market negatively will happen near future. The stock market's environment is likely to improve gradually.
is just the beginning, due to the possibility of trade wars. There's one thing which is complacency, most ppl will view this a drama , nothing big.... brushed it aside, a trade war usual start will retaliations, more n more, then u get a war. This is where the complacency becomes very dangerous, catched ppl unexpected.
Wow, so many comment here... @NoPlayBall, Sure, I will share for any market insight. @CharlesT, I'm not sifu, I just have a luck spotted the direction correctly.
I think we should be caution for any stock investment, because current market is full of uncertainty, and investor is hate about uncertain condition. Well, whoever can survive from this crash will be the winner of tomorrow.
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