In a few hours, Trump will likely publish something about China.
🇪🇸 TRUMP CONFIRMS THAT HE HAS NOT CANCELLED MEETING WITH XI.
Positive = bomb 🟢
Negative = dump 🔴
Unclear = trash 🔴
Investors are realizing some important news coming from China:
It is possible that the entire drop in tariffs on October 10 was simply a big misunderstanding between Trump and Xi.
The news about China's rare earth export controls came out on October 9 at 8:30 am ET, 26 hours BEFORE Trump published about it.
This was an event that was not news UNTIL President Trump published about it a day later.
Last night, China issued a statement clarifying its "export controls" on rare earths.
In its response, China stated that the new controls are NOT a total ban on exports and that applications that "meet the regulations" will be approved.
In the midst of the market drop on Friday, our view was that Trump's announcement of a 100% tariff was a bargaining chip.
After China's statement last night, we believe that the chances of Trump's 100% tariff on China coming into effect are extremely low.
The largest cryptocurrency sell-off in history and a loss of -2.5 trillion dollars in the S&P 500 market capitalization seem to have been driven by a big misunderstanding.
We expect another "trade agreement" soon.
