Excerpt from Louis Navellier's Marketmail - 5/14/2019
After setting a new all-time high on April 30, the S&P 500 suffered some tough days but is still down only 4.5% from its peak. The stock market initially got up on the wrong side of bed last week when fears emerged that the Chinese trade negotiations may be breaking down. However, China sent a very large team to negotiate trade deal enforcement details, so the stock market recovered somewhat on Friday.
In the heat of last week’s market action, I recorded three podcasts. Here’s my latest podcast (yesterday).
Interestingly, the fear that the trade talks with China might be derailed, lowered Treasury yields, which in turn just makes stocks all the more attractive, especially as the post-earnings-season stock buyback surge heats up. As I have repeatedly said, I expect another big wave of stock buybacks in the upcoming weeks.
Most of our analysts weigh in on the sudden eruption of renewed trade tariffs on Chinese goods. Bryan Perry focuses on the dangers to the Chinese housing bubble if this trade rift is not mended soon. Ivan Martchev agrees, since China can’t keep ignoring its epic debt bubble (300% of GDP) by one artificial intervention after another. Jason Bodner weighs in on how bugs in the China trade deal interrupted a fine earnings season (and Trump’s legal challenges). Meanwhile, Gary Alexander continues his series on how to interpret economic statistics from a variety of angles for better understanding, while I concentrate on two other major geopolitical hot spots – Iran and Venezuela – as well as the Chinese trade situation.
Income Mail: Trade War Threatens to Pop China’s Housing Bubble
By Bryan Perry
Expect No Gain on Trade without Real Pain
Growth Mail: Media Myths Fuel Widespread Ignorance
By Gary Alexander
Examples of Alternative Facts (or Alternative Explanations)
Global Mail: A Sino Trade Curveball
By Ivan Martchev
A Hard Landing in China is a Matter of When, Not If
Sector Spotlight: Trade Conflicts amid Earnings Season Disrupt Markets
By Jason Bodner
Five Reasons for Buying Stocks on Dips
A Look Ahead: Geopolitics (in Iran and Venezuela) Dominate the News Again
By Louis Navellier
Trade Talks Escalate to Cover Intellectual Property Protection