Hey friends. I’m sure you know that the stock market has been fretting of late over different matters. Probably two of the larger concerns deal with:

(1) the future of interest rates and

(2) escalating rhetoric of full-blown trade war between the U.S. and China.

This past week has seen the interest rate concern allayed somewhat as the Fed Chairman’s mid-week comments were interpreted as dovish. Go here to read about the market’s take on Chairman Powell’s comments made on Wednesday. Whether the market’s reaction is the correct read is uncertain for now.

Today, President Trump met with Chinese President Xi Jinping at the 2018 G20 summit in Buenos Aires, Argentina. Go here for an article hot of the press with regard to the recently concluded meeting. White House chief economist Larry Kudlow commented that the meeting went “very well.” The Chinese media reported that Trump and Xi Jinping agreed to hold off on imposing any new tariffs January 1, 2019 as had been scheduled to take place.

If there is even a reprieve in the planned escalation of the trade battle with China, the market is likely to see that as a big positive, in my view. Should a trade deal come from it, there could be a significant rebound with stocks, I believe.

See you next time,

Paul