Summary Volatility mushroomed in the stock market this week, as the major stock indices experienced their deepest correction of 2019. The wild swings were initiated by The Twitter Gangster In Chief with a threat to impose new tariffs on Chinese imports just before a Chinese delegation was due in Washington for negotiations... about tariffs. This was especially surprising following weeks of positive reports regarding the negotiations with China and this summit was supposed to culminate in a grand trade deal.
Oops...
Meanwhile, stock benchmarks all hit their lowest levels in more than a month, while Treasury yields plummeted as well, and risk assets were under pressure across the globe. We've seen wild intraday swings in stocks since December, as the often-contradicting tweets/headlines caused sudden shifts in investor sentiment over time.
On Friday, 45 confirmed that talks with the Chinese will continue, which was enough to cause a short squeeze ahead of the weekend.
It's hard to say where things will go now... But if there's any follow through on Friday's rally, we may resume the up trend once again.
That's the immediate future...
Looking further out (which ain't really my thing, but let's go with it), if the trade war escalates rising prices will lead to inflation which will, in turn, lead to rising interest rates...
And we all know what happens when interest rates start to rise. | 
