Recently, President Trump threatened imposing higher tariffs on Chinese goods. Watch this latest installment of USMR Market Insights and listen as Coy Wells explains what this means for you and the entire country.
How Will The U.S.-China Tariff War Affect You? – Video Transcription
Coy Wells: 00:00
Thank you for watching U.S. Money Reserve Market Insights. Today we're going to be talking about the stock market and we're going to be talking about the tariffs that are continuing to take place, as we talked about last week. Folks, we are now seven days away from the stock market being the longest bull market ever recorded in U.S. history and the one thing that we talked about in the past is how close and how much further can it really go. We know that the market peaked in the beginning of the year. We know that is still holding around 25,000 points as it sits today. The question we have to start asking ourselves is right now in seven days, it'll be the longest bull market recorded in history since 1991 going into the year 2000. With that being said, we have to start asking ourselves the question, how much more room can the stock market really move?
Coy Wells: 00:43
We know that since January it's not been able to get back to the levels that it was in the beginning of the year. With that being said, how much more room can it go and is the upside potential, does that outweigh the downside potential? Right now, I think it's about 10 percent versus 90, and that's huge considering that the downside is massive for those with your money sitting in the market. The other thing too is the continuations of the trade war and tariff war that has continued to take place between China and the United States is continuing to heat up. Last week we talked about that China would most likely decrease the value of their currency to offset the tariffs that are being placed on them by the current administration, and that's exactly what happened. They reduced the price of their currency to offset the tariffs. Trump, if you've seen on national television, has doubled down, basically increased, doubling the amount of tariffs and increasing in the amount on the or the amount of goods that he's going to place a tariff on.
Coy Wells: 01:39
Now, China is pinched between a rock and a hard place. Today, China's stock market has now fallen in an accumulative total below the Japanese stock market, so the tariffs are impacting the Chinese stock market, which is putting the Japanese stock market above the Chinese stock market, so typically you see the U.S. stock market, you see the Chinese stock market, then you'd see the Japanese stock market, all of them with a massive amount of money sitting in there. The Japanese and the Chinese stock market boasted at about $6,000,000,000,000 and they're really pretty even, but now for the first time we've seen China fall below the Japanese stock market and that's because of the tariffs. When that happens, we're going to start seeing China here in the near future. They're going to start retaliating. They're either going to start increasing the tariffs on goods and holding up items like they are now doing with soybeans and other commodities that are heading overseas.
Coy Wells: 02:29
They're holding them up and they've already stated we'll hold them up as long as they can and we'll hold them up until they rot, and that's exactly what's impacting some of the farmers and ranchers here in the United States that we're also seeing on the news. This information is kind of, it's more than kind of, it is extremely crucial to understand we're in the midst of a currency war that really started many years ago. As this continues to escalate, you will see both sides of the fence continue to escalate their measures until they get what they want or until they can find a sound ground or middle ground between the two of them. Until that happens, that continues to put our money at risk, but we also know that our money already here in the United States is already at severe risk. We're looking at one mistake, one item, one thing can happen here in the United States because the economy here is so fragile that one mistake can cause the entire house of cards to come tumbling down.
Coy Wells: 03:21
We know that the 9/11 incident was horrific to the United States and it put everything into a financial crisis. We already were in the midst of the financial crisis with Lehman Brothers happening. Everyone was watching the stock market waiting for a reaction. No one was watching the banking crisis. No one was watching the housing crisis, but we were all impacted by that. We have continued to give you the best information as absolutely possible for all of us to be able to continue to look at and for you to be able to do the research on your own to help you out with what's happening below the surface and that's what I continue to really try to stress is that there are things that are taking willow or taking place below the surface that it can and will impact us in the long haul. As always, thank you for watching U.S. Money Reserve Market Insights and the new topic that we have out is The U.S. Economy: A House of Cards. If you want, click on the link below or call the phone number so we can get this out to you. It will provide you additional information and information that we've discussed today. As always, thank you for watching U.S. Money Reserve Market Insights.