By Graham Summers, MBA | Chief Market Strategist
As we keep stating, a trade deal is coming between the U.S. and China. This means THE lows are in for the markets.
Over the weekend, China officials met with their U.S. counterparts in Switzerland. All reports signal the talks were productive with U.S. trade representatives noting that the two countries were able to come to basic agreements quite quickly.
We were not surprised.
China has no other option here as its economy is on the verge of economic collapse. Factories are closing daily. Protests are erupting with workers demanding back pay after not being paid for weeks. Youth unemployment is skyrocketing. Indeed, things have become so dire in the People’s Republic that it has simply stopped reporting numerous economic data points as Jeffrey Tucker notes.
Starting the last several months, and, in some cases, dating back several years, China has gone dark in reporting the following: land sales, foreign investment, unemployment numbers, business confidence, numbers of investors in financial markets, real estate valuation, retail sales, and even vital data on cremations so that health authorities have no idea what is going on. The bureaus have simply stopped reporting.
Source: The Epoch Times
Put simply, China NEEDS a deal that results in reduced tariffs, or it will enter a deflationary death spiral. This doesn’t mean a trade deal will come rapidly (although that seems to be the case). Rather it simply means that as far as the trade war between the U.S. and China is concerned, things are improving and will continue to improve.
This means THE lows are in and stocks are ready to rocket higher. The S&P 500 has already erased ALL their losses since Liberation Day and is now breaking above its 200-day simple moving average (DSMA) for the first time since March.
If you’ve missed out on this move, do NOT be alarmed. Things are just getting started here. Indeed, both gold and bitcoin has already shown us what is coming: a melt up in which risk assets got to levels few can imagine.
So, what does this mean for stocks and investors?
THE lows are in. And while the markets as a whole should work their way higher, certain investments are poised for truly EXTRAORDINARY gains based on this unique environment. We detail three of them it in a Special Investment Report titled How to Profit a Inflation.
Normally this report is only available to our paying clients, but in light of what’s happening in the markets today, we are making just 99 copies available to the general public.
To pick up one of the remaining copies…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
