FYI: In April, U.S. President Trump tossed a couple of punches at Chinese President, Xi Jinping. Trump’s left hook was an import tariff on steel. His uppercut was a tariff on aluminum. These tariffs are like taxes aimed at China. They’ll make it tougher for Chinese companies to sell goods to the United States.
But trade is a two-way street. China buys a lot of U.S. products. China’s economic success might even be great for U.S. stocks. If China punches back with its own import tariffs, it could hurt American businesses.
That’s why a trade war makes people nervous. They want these leaders to kiss and make up. Many new investors, especially, say they won’t invest until things settle down.
Unfortunately, it doesn’t pay to wait. Warren Buffett says, “You pay a really high price in the stock market for a cheery consensus.” History agrees. Time and again, people let current-event stories pull them by the hair. That’s why most investors earn poor returns
Regards,
Ted
https://assetbuilder.com/knowledge-center/articles/should-investors-fear-a-trade-war-with-china
