Weekly Wrap 8 December 2019
Weekly wrap from Pythagoras Investing
Trade Wars
Chinas Planning leads to the Trade War
Where economic rationality is expected and not delivered it leads to investment mistakes. This is a key area maths has a role to play – seeing through the noise and getting to the heart of the share price behaviour. Chinas aims are not the same as a Western paradigm. Innovation will bring great change to the captains of industry.
China – Cultural Divide and Trade Wars
Western commentators and analysts find China troublesome to fathom. This is due to the ‘free market’ prism through which they look through. It is a fundamentally flawed starting position when trying to understand China! This further complicates dealing with China in a Trade War. Cultural Divide There is a Cultural Chasm which is impossible for…
Trade War Bullying : the common thread through history
We highlight the parallels of the China-US and Japan-US trade wars. None of this is new and there is a long way to travel yet. Firstly, let’s start in the mid 80s. New York Times, 11 March 1985, page 1 headline “JAPAN INVESTS HUGE SUMS ABROAD, MUCH OF IT IN U.S. TREASURY BONDS”. An enormous…
Inverted yield curve. China Outwits the US, again!
The US backtracked from the recent Trump “tariff tweets” due to be implemented on September 1. Essentially, Trump admitted that U.S. consumers were bearing the brunt of the impact and decided to delay tariffs, recognizing the negative impact further tariffs would have on the U.S. economy. He has lacked the understanding of the effect of…
TRADE WARS: Effects on America
This week Trump tweeted he would increase tariffs from 10% to 25% on USD500m+ of Chinese goods. Investors are worried that the additional tariffs hamper economic growth causing uncertainty and volatility in the market. US and Chinese trade officials will resume negotiations in Washington this Thursday/Friday to try for a trade deal. The proposed higher tariffs are scheduled…