USA CANCELS TRADE MEETING WITH CHINA. What Now?
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Today the US canceled a trade meeting between the US and China. Does this mean a trade deal will not get done between China and the USA? Also, we got very weak China GDP numbers last night. The weakest china GDP since 1990!
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Holy smokers it’s a rough one out there today guys we got the Dow down over 400 points today we have the NASDAQ down over 2.26% now these screenshots were taken about an hour before the market closed so it could get even worse I don’t know we’ll have to see as far as stocks.
I track of 83 stocks I track on a daily basis there are very few that are actually green today this is the whole amount of green ones out of 83 stocks I track almost everything out there is red today if we look at the big tech giants Google McDougal down over 3% today Microsoft down two and a half percent.
Apple down two and a half percent in amazings on down over four and a half percent today Now there are a few reasons why the markets down today I’ll give you a couple minor reasons then we’ll get into the the major reasons why the markets down today I’m actually surprised the market is not down more today.
I would have thought with some of these things that came out maybe we would have a down 600 day or down 700 day or maybe even a down 800 day to only be only be down 400 plus in the Dow I’m actually a little surprised I thought it would be a little worse guys also want to share with you guys how much money.
I have in cash right now versus invested and then at the very end I gotta show you guys a video that you got to go watch after this one. It will make you guys laugh Believe me. Okay. All right. So first off here a couple minor reasons. First off, the investor known as the Warren Buffett of Boston rattles Davos crowds.
Basically Davos is a big conference going on. Basically if I couldn’t even go to it. They called me broke boy there and that’s going on right now you got headlines like this. Ray Dalio, founder of the world’s biggest hedge fund sees a significant risk of a possible us recession in 2020.
Those types of things are just like the minor reasons the major reasons we’ll get into now. But yeah, I feel like almost every time Ray Dalio goes on TV, the market goes down that day. He obviously is a very, he has a very pessimistic look on the markets right now. And, you know, I swear every time he goes on CNBC or Bloomberg right now, it just the market just drops in that that particular day.
And sure enough, today, he goes on talking about possible us recession 2020 why he thinks that and big drop in the market, but as far as the main reasons the market is down today, the first off came out late last night, it was around China’s economy. And that grew at the slowest annual rate since 1990.
Okay, a long time ago, fourth quarter GDP figures slips to 6.4% as trade war hits consumer sentiment out there, and China is just getting worse and worse. This is one of the big reasons why the market is down today. And if there’s no stability in the weakness right now, almost every single quarter is just getting weaker and weaker and weaker in China.
And you got to ask ourselves, like, Where’s the bottom in the cell whole situation? Is there a bottom? Is it just gonna get worse and worse for several quarters, maybe even a year, maybe even two years in the future? Like, like, we’ve got to see some stability in China.
And right now, there’s no signs that we’re going to see any stability in China anytime soon. Okay. And when you have things like this come out this next headline, it makes it even worse in China. Okay. United States cancels trade planning meeting with China.
Sources say the White House has rejected a trade planning meeting with China this week due to the outstanding disagreement over intellectual property rules. Should Beijing and Washington failed to agree on a parliament solution by March 1, obviously, the tariffs are going to go to 25%.
Okay, the White House tells CNBC that the team remains in touch in preparation for high level talks with Vice Premier Lu he by the end of this month, all right now, this is the main reason honestly, the markets are down so big today, you have one you have China, just weakening, weakening, we just saw more economic data that is weakening, then on top of that, you have a possibility that the tariffs will go to a 25% rate.
And that could mean absolute disaster for China, that could mean they go from their numbers, a weakening to their numbers has become an absolute disaster toward the back half of 2019. If those 25% tariffs end up getting hit on China, guys, that would be a massive, massive move, you’ll see a lot more companies moving production to other countries, maybe India, or maybe back to the states or things like that.
And that would be a very, very ugly situation. So now you have the markets freaked out in a major way, because we see China weakening, weakening in how many companies is that going to hurt across the US stock market. And that’s a bad situation there, guys. So this is something that has really freaked out a lot of people because a lot of people like myself believe there’s going to be a trade deal done.
And I I really believe there’ll be a trade deal done by March 1. But when you see a headline like that, when you see news like that, it makes you say, dang, maybe I could be wrong about this, maybe there’s not gonna be a trade deal, like come by March 1.
And then that could mean an absolute disaster for the stock market like that would get really ugly In my opinion, because it will just make China get to a very volatile stage and then a lot of a US investor will just freak out. Okay. This is why I’m around 30% cash right now and 70% invested.
So I want to stay very invested because I believe the trade deal will get done and I believe then you know, China will start to recover. And I believe like the US will probably strengthen after that and everything will be okay. But here’s the thing that might not happen. Okay, who knows?
Maybe also March 1 comes, no trade deal gets done, and also the 25% tariff gets hit on China, it maybe even brings down the us some, and then China gets to a really, really weak stage. That’s why I want to, you know, have a good amount of money in cash still, at this stage in the game, I’m kind of almost hedging my bets a bit, you know, I got a lot of money invested.
But yeah, I also got a lot of money on the sideline, I’m still like buying little shares here and there, I’ll buy like $2,000 worth of a stock that I feel very undervalued or $3,000. But in terms of me just flooding money in the market like 10s of 1000s of dollars at a time right now.
I’m just not doing it because I’m like, What if I’m wrong about this? What if I’m wrong about the trade deal getting done? What if that never gets done? You know, that’s a situation where I just think it’s gonna be ugly for the market, it’s gonna be ugly for the Chinese economy and it could actually have a spillover negative effect in the US economy to a certain extent so that’s what kind of worries me and that’s why.
I’m like I’m just I’m just you know, I’m gonna have a lot of cash right now. I’ll buy a little shares here and there but I’m gonna keep a lot of cash on the sidelines just in case the you know, the trade deal doesn’t get done and we have an ugly ugly situation out there guys. So that’s kind of my feeling on it.
Let me know what amount of money you guys have in cash right now versus actually invested we’d love to hear from you guys. A video I would love for you guys to watch this so funny. I just saw this headline. I’m like, Oh my gosh, I gotta tell my subscribers to watch this video.
This is hilarious. Just type in YouTube, Cortez economic genius that will make you guys laugh. You will thoroughly enjoy that video. That’s all I can say. Let’s come back to this video. When you’re done. Let me know if you thought that was pretty funny in the comment section. If you thought it was funny or more of a horror movie. I would love to hear from you guys. As always, thank you for watching and have a great day.