I agree with the following from Bloomberg macro strategist Cameron Crise’s commentary this morning:
“One needn’t be a cynic to note that Monday’s sharp decline in the equity market was sufficient to get the president tweeting about the ongoing possibility of a deal with China, the latest twist in an increasingly tiresome trade-war soap opera.”
“While the last week or so haven’t exactly made stocks “cheap,” by the same token you can’t say that permanent damage has been exacted upon the bull market narrative.”
“So Monday didn’t kill the equity bull market, but Trump’s trade-deal tweets don’t represent a get-out-of-jail free card, either. Keeping an open mind on how things will play out would appear to be the right policy. As the old saying goes, you should be buyin’ when they’re cryin’ and sellin’ when they’re yellin’. Right now, it looks like markets are just scratching their heads…and with good reason.”