The fallacy of the trade agreement with China

The exchanges continue to mark historical highs as rumors are heard about the trade agreement with China, but the reality is that the global economy has slowed.

Rumors about the signing of an impossible trade agreement with China suggest that economic problems come from there. The economic problems that come are the end of an upward cycle of 11 years.

Only the benefit of a few companies increases, while most companies have stagnated and others are already starting to publish “profits warning.” This is the reality of the economy.

The NASDAQ 100 index trades with a P / E ratio of 25.75. That is a value that indicates that companies are overvalued. The year 2018 closed with a P / E ratio of 21.78.

On the other hand, the trade agreement with China is impossible today, since the real point of disagreement is intellectual property. A matter where China has been stealing from the West forever and what it doesn’t want is to pay for technology. And we must ask ourselves if we are interested in negotiating with someone who has robbed us and does not want to compensate us, perhaps we should simply put aside China.

Biden resorts to declaration of a regional state of emergency The president of the United States, Joe Biden, has been Read more

US-Europe Trade War Worsens, Could Trump Defeat Change That?

US-Europe Trade War Worsens, Could Trump Defeat Change That? The World Trade Organization (WTO) resolution on US subsidies to Boeing Read more

$2.4 Trillion Stimulus Package Proposed in US With Second Direct Payments to Americans

$2.4 Trillion Stimulus Package Proposed in US With Second Direct Payments to Americans. The markets start October with gains, supported Read more

Bankruptcies and store closures among US retailers hit a record in the first half of the year due to the pandemic

Bankruptcies and store closures among US retailers hit a record in the first half of the year due to the Read more

Federal Reserve will continue to support the US economy without defining mechanisms

Federal Reserve will continue to support the US economy without defining mechanisms. The Federal Reserve remains committed to using all Read more

WTO rules in favor of China. The Trump Administration rejects the ruling and considers that it demonstrates the "inefficiency" of the WTO

WTO rules in favor of China. The Trump Administration rejects the ruling and considers that it demonstrates the "inefficiency" of Read more

Stock markets are out of touch with reality and the bubble may burst

Stock markets are out of touch with reality and the bubble may burst. Throughout the month of August, the US Read more

The Fed changes its way of acting after a historic speech

The Fed changes its way of acting after a historic speech. "A true turning point" or "historic speech" are some Read more

American Airlines cuts 19,000 jobs and plans to fly 50% less than before

American Airlines cuts 19,000 jobs and plans to fly 50% less than before.   American Airlines (NASDAQ: AAL) will cut Read more

Conversation between the US and China. Neither is interested in breaking agreements.

Conversation between the US and China. Neither is interested in breaking agreements. Conversation between the US and China continue, European Read more

Leave a Reply