Weighing The Week Ahead? - Today's Editors' Picks
By SA Editors' Picks :
Good morning! I'm your curator, Jason Kirsch.
Here are today's Editors' Picks:
- Scary headlines (SA For FAs)
- The 'vicious steepener' risk (The Heisenberg)
- Weighing the week ahead (Jeff Miller)
- What's great about CEF investing? (Faithful Steward Investing)
- Stocks to watch this week (SA Stocks To Watch)
- Podcast: Get off the dependency train (SA For FAs)
- Interview: Value investing with Michigan Value Investor (SA Interviews)
Chart of the day:S&P 500 performance last week
Comment of the day, The Heisenberg
China has repeatedly warned that publishing a list in conjunction with the proposed additional tariffs would beget an immediate response and due to the fact that Beijing would be by definition unable to respond commensurately via tariffs (the U.S. only exports ~$130 billion in goods to China, so if the combined tariff proposals from the Trump administration were to exceed that total, Xi couldn't retaliate proportionately), it's likely that the discussion would shift to a possible yuan ( CYB ) devaluation and, in an extreme scenario, to the selling of U.S. Treasuries ( TLT ).My own view is (and has always been) that the potential exists for a miscalculation here. For instance, even if this is mostly posturing ahead of the midterms, it's entirely possible that if Trump were to push the envelope by, say, publishing another list, China could fire a warning shot with a drastically weak yuan fixing, destabilizing markets overnight. But assuming consensus is correct and this is mostly predicated on the midterms, then the idea is that the aggressive trade rhetoric could subside once the elections are over.
Image of the day:Zuck in front of the U.S. Senate
Do not mind anything that anyone tells you about anyone else. Judge everyone and everything for yourself. - Henry James
Thanks for reading. Please share your 'Editor's Pick' with fellow investors by posting it in the comments.
Have a great day!
See also Mammoth Energy: Unsustainable Contract, Sum-Of-The-Parts Indicate 50% Downside on seekingalpha.com
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