someone raised a really good point about trade war during dinner. China is manufacturing power, not a financial power like the U.S.. Currency and not the stock market is the barometer for China. Of course, China can't let the RMB/USD to keep falling, but at the right level, the competitive advantage is on China's side.
So what is the right level? Nobody knows, not even the chinese. But I may have a simple way, watch 'FXCH' on stockcharts. 50 day still in negative bias mode. Time to recheck for market bottom when the 50 day turns.
Everything else is simply chatter, we are living in the Matrix.
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I should also add that China announced 6 new free trade zone last week I think. In means simply, China will be aggressive in letting RMB/USD fall. Expect all exporting countries to devalue their respective currencies. Which explain the strength in the dollar.
Other than this, the only war option left is a hot war. I guessing skirmish over Taiwan or some island in South China Sea as soon as next year. For me, it is like a tough guy coming over to my house and decide to take a dump to show me who is boss.
Edited by punter, 01 September 2019 - 09:13 AM.
