Yesterday’s sharp move in US stocks, US Bonds and the US dollar signaled the beginning of the year-end rallyBut Donald Trump’s Trade Wars may have derailed the world economy. Yesterday’s…This content is for Research, Model Portfolio + Investment Ideas, 1-month Free Trial and Diamond Membership members only. Log In Get a 1-month Free Trial
TRADE WARS ARE
THE WARS OF THE 21st CENTURY
SANCTIONS ARE THEIR WEAPONS OF MASS DESTRUCTION
In our post titled TRADE WARS ARE THE WARS OF THE 21st CENTURY, we analyzed how our world had evolved from military conflicts to economic wars as controlling land and populations were no longer the ultimate strategic goals in a globalized world.
In the age of Google, Facebook, 1 Trillion Dollar companies and meddling into national elections through fake news and social medias, land borders have become irrelevant and de -materialized jurisdictions have taken over.
TRADE WARS, THE TRUMP METHOD AND LIQUIDITY
Equity Markets rose sharply last week as economic indicators and the heightened trade war led investors to conclude that the world economy would slow down marginally in the next six months while the ongoing trade wars would only have a limited systemic impact.
Military tensions are building fast in the Middle East and the tempo has accelerated markedly in the past 7 days.
In our article titled FORGET NORTH KOREA, THE NEXT WAR COULD WELL BE IN THE MIDDLE EAST published in February 2018, we highlighted the rise in tensions and analyzed the dynamics that would cause a major military conflagration in region.
Last week was full of events, on the military front, on the macro-economic front and on the earnings front.
We are exploring their implications below.
Incoherent Western Policies ?
Last Friday’s harmless missile attack on Syria following Bashar El-Assad’s use of Chemical weapons in Douma on April 7th 2018 created a lot of volatility in the financial markets but did not achieve much, apart from demonstrating Russia’s hold of the Middle Eastern Scene and the unwillingness of the West to confront Russia, Iran and Bashar El Assad.