possible side effect of tariffs and trade wars

[Benton]

(08-17-2018, 02:28 PM)fredtoast Wrote: Grantham does not say it is "positive"





While many pundits have decried Trump's trade escalation as heavy-handed and potentially damaging to the global economy, in an ironic twist of fate it may have saved the US market from a painful explosion.

But to hear Grantham tell it, that may not have been such a good thing.

"It's a pity, because we know how great bull markets and great economies end," he said. "They traditionally end with a melt-up and a blowup. What about when that doesn't happen? Who knows? We have no experience of a decadelong bull market fizzling out. Here we are, in no-man's land."

I take it that he's referring to not being a good thing for investors.

Huge meltdowns aren't necessarily bad for investors. When the market hits bottom is the best time to invest. But a long steady decline? It gets harder to predict when will be the best time to buy.


I'm a fan of  tariffs. I think Trump did well there. Congress dropped the ball, though, in that it could have increased taxes to businesses, but provided some breaks for employing locally or using local goods or services. As it is, increased tariffs likely won't have a huge positive impact as US companies will just pay more to keep cheap labor over seas, passing the cost on to consumers.When their profit margins drop, they'll blame it on the tariffs and they'll get dropped in the name of being business friendly.