Category Archives: War, Terrorism & Ugliness
I sure hope you’re following along as directed!
I’ve repeatedly identified The Boeing Company (NYSE:BA) as particularly at risk of retaliatory trade tariffs, should President Trump press on with his wishes to hit China with $60+ billion in tariffs.
My reasoning was very simple and based on first-hand experience.
Unlike the United States and Europe, where politicians will bicker endlessly about the political merits of trade tariffs, free-trade, and economic policy, China will go right for the jugular by targeting our most valuable companies.
I’m typing with a heavy hand and an equally heavy heart following the horrendous events in Las Vegas earlier this week. It’s a city I know well and have enjoyed tremendously over the years.
As with any act of violence no matter where in the world it happens, it’s difficult to imagine how a nation, and so many people who have had their lives tragically shattered, will bounce back.
Many investors are wondering why the financial markets didn’t come unglued when news of the shooting broke.
In years past, they would have gone straight down or at least stopped in their tracks. Yet, incredibly, the opposite is happening.
The markets powered up Monday, then again Tuesday, to notch a new five-day winning streak at record highs. And, they’re up again in early trading Wednesday morning as I write.
There’s actually a very good reason, albeit one that’s completely counterintuitive.
In the years since 9/11, traders have learned to distinguish between two types of events:
- highly localized events that make international news, and;
- localized events that are global news.
Today’s financial markets are truly global, which means that they are increasingly impervious to highly localized trauma, regardless of why it occurs or even who causes it.