Monday, May 13, 2019

PANIC OVER CHINA TRADE WAR COULD BE GOOD BUYING OPPORTUNITY

I just set all my stocks to reinvest dividends.  With people panicking over the trade negotiations with China, stock prices have plummeted.  I think it could be a good buying opportunity.  So I'm reinvesting all dividend income until the whole thing plays out.  Eventually I believe China will negotiate a deal and the markets will recover.

I think this is where Trump is definitely on the right track.  For far too long trade between the U.S. and China has been very one sided.  It's about time the tables were turned.  While many might think Trump is fighting a losing battle here, I don't think that's the case.  He stated almost casually, "We can make these things here."  Which is absolutely true.  So while Chinese products may be cheaper, there's no reason we have to buy from them.  Anything manufactured there can be manufactured in the U.S. just as well.  Might cost a little more, but then again, it would also provide more jobs and boost our economy.  I think he's on the right track and we'll eventually see a new trade deal with China that is much more favorable to the United States.

No comments: