We’re nine years into the current bull market. When stocks go up for such a long period of time, it breeds complacency. It generates a feeling that going up is the new default. That it’s all been written down.
In 1929, after a bull market had risen, 1919-29, a trade tariff, such as the one being implemented today, will if not halted will cause the same. It means your asset worth will erode because of American greed and wanting to be the police and empire influence in the world. Americans pride is OK, but we need world pride. We are only a small part of it in population to 7.6 billion.The trade act was the Smoot-Harley Act implemented in 1929, mainly prejudice toward immigration and foreign trade. Oh the lessons we will learn and you can tell the Trump voters, "what were you thinking".
The biggest change so far, however, is President Donald Trump’s new penchant for tariffs … specifically on Chinese goods. Trade war rumblings have Wall Street investors on edge and sent market volatility soaring. Check the markets lately. Live and learn.
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