MARKET CALL: Pullback, Correction, Or Meltdown?

Trump Trade Turmoil hit the stock market hard on Friday as President Donald Trump raised the US tariff on Chinese imports from 30% to 130% in retaliation for China’s imposing severe export controls on its exports of rare earth minerals. This all happened ahead of a summit meeting between Trump and Chinese President Xi scheduled for later this month. On Friday, Trump said he might not attend, then changed his mind.

If neither side were to blink, the US and Chinese economies would lead the global economy into a deep recession, if not a depression. But we expect that both sides will blink very soon given the extremely adverse consequences of a trade war between the world’s two biggest economies.