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MR BLUSTER STRIKES AGAIN

ByGary Kaltbaum
1 Comment
—-Mr. Bluster strikes again.—-
—-We have taken some heat in recent weeks when we take on this president for changing his mind based on the market and its moves. Sorry! We do not want a president who would change economic policy off of a few percent to the downside. You don’t believe us? How many times were new tariffs going to be put on China only to be taken off? How about those European auto tariffs that were taken off 4 days before they were supposed to go in effect without any negotiation? How about those tariffs on Mexico that went away after a few days? We have stated that we expected the latest round of tariffs to go into effect on September 1st…NOT to go into effect. Just look at past performance.—-

—–“””The United States Trade Representative (USTR) today announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports. On May 17, 2019, USTR published a list of products imported from China that would be potentially subject to an additional 10 percent tariff. This new tariff will go into effect on September 1 as announced by President Trump on August 1. Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent. Further, as part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles. Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing. USTR intends to conduct an exclusion process for products subject to the additional tariff.  The USTR will publish on its website today, and in the Federal Register as soon as possible, additional details and lists of the tariff lines affected by this announcement.””””—–

—–Health, safety, national security and other factors? We are not stupid Mr. President! This has nothing to do with health, safety, national security and other factors. The president, once again, backed away from new tariffs because of market deterioration.—–

—–We are not complaining about this move. We hate tariffs. And yes Mr. president, business and consumer pay for the tariffs. Why do you think you paid off the farmers with $28 billion of our tax dollars? We are complaining because we cannot stand policy based on market movement. This is not ordering carpet and tile for hotels. There will come a day where this becomes a “boy who cried wolf” market. There will come a day where markets have had enough with this “Sybil”-like economic policy which changes with market winds. There will come a day where markets do not believe a word that comes out of this president’s mouth.—–

—–On cue, markets get back what they lost yesterday…and more. Technology leads today as technology was just excused from detention. APPLE (AAPL) rallies up 5% immediately. (Would like to see Tim Cook’s phone logs as we are sure he has been talking to the president on this.) The good news is that the President backed away from stupidity. The bad news is that one day the market will not trust a word from Mr. Bluster and then watch what happens with markets.—–

 

 

 

 

One Comment

  1. I agree, I don’t like the seesaw tariff threat either. I wish we would just have increasingly massive tariffs on all China imports until they semi collapse like the USSR. The market is going to get wise to this game before long. September is coming up. The market doesn’t always fall in September but if it’s going to correct it’s usually exaggerated in the fall.

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