Market Update - Tariff Turmoil (Patreon)

WARNING - This will frighten many, but I am not going to sugarcoat things!

Well, here we are - markets still rocky, preparing for an ugly Monday open. My cash position is currently north of 11%, and my margin is many times that. When buying opps present themselves, I will be jumping in. As always will share my trades in real time.

A few items to consider

1) Expect a nasty sell-off on Monday when markets open. BTC is already taking the hit as Crypto is the only thing that can be traded 24/7.

However, as I often say "BTC loves a crisis" and typically rebounds well after the fact... check this

2) Tariffs are generally seen as acceptable for countries like China and Mexico. In Mexico’s case, retaliation is unlikely, meaning the peso will bear the impact. China, on the other hand, is expected to respond, but despite some short-term challenges, the U.S. stands to benefit in the long run. Canada, however, would be hit particularly hard, as tariffs could make Canadian goods too expensive for the U.S. market. This could jeopardize 60% of Canada’s trade and 40% of its GDP, leading to severe economic consequences. It’s no surprise that Trudeau appears concerned, as unemployment could potentially rise to double digits.

3) Some experts feel Tariffs are good for Bitcoin... not when it is a correlated risk on asset IMHO, however! Again short term pain. See pt 1 above.

 4) Euroland remains an issue - Based on recent statements and actions, President Trump has indeed expressed intentions to impose tariffs on the European Union. He has publicly stated that the EU treats the U.S. unfairly in trade practices and has threatened tariffs as a response. This could spiral the EU and Canada further into a hole. Rem Europe is stagnating now - zero growth. Tariffs will hurt even more.

 5) China impact - when Trump put tariffs on China in 2018 and started the first trade war. Everyone said that it would cause the stock market to crash and bring on a nasty recession. See that tiny dip circled in red? That was the “devastating crash” everyone was worried about.

China will retaliate hard, and they can do that.