With all the ups and downs of a roller coaster, if the past few days have taught us anything it’s that the market and emotions have no business affecting each other. It’s already hard enough to find long-term positions in a market this volatile without worrying about the President’s latest Tweet.
WIXOM, Mich. (PRWEB) December 07, 2018
Bill Poulos, President and Co-Founder of Profits Run, Inc., announced that although it is unclear the outcome of the meeting between the United States and China, the best way for investors to approach the market is by making decisions based upon facts. This past Saturday, December 1, 2018, the President of the United States, Donald Trump, and China’s President Xi Jinping met to discuss the current trade battle. For the next 90 days, the two men agreed to halt all new tariffs for the next 90 days as the countries pursue negotiations. Bill Poulos shared, “Now that sounds like great news, right? Well it would be, if that was the whole story. The markets which jumped up in response to the favorable sentiments being made by White House representatives quickly turned sour. Per Larry Kudlow, the trade deal devolved into a tentative commitment. Using words like ‘maybe’ and ‘presumably’. Secretary of the Treasury Steven Mnuchin, meanwhile, commented that ‘I’m taking President Xi at his word, and his commitment to President Trump. But they have to deliver on this.’”
Poulos continued, “The complete lack of response from China over this change in sentiment is ominous, to say the least. President Xi Jinping traveled to Europe after the G20 Summit with no clear indication on when he would actually give negotiations with the U.S. the time of day and investors took a beat to realize all their excitement might be based on absolutely nothing. As JPMorgan said this Tuesday, ‘It doesn’t seem like anything was actually agreed to at the dinner and White House officials are contorting themselves into pretzels to reconcile Trump’s tweets (which seem if not completely fabricated then grossly exaggerated) with reality.’”
Profits Run’s President went on to explain, “A high ranking contact within the White House said, ‘nobody knows what the deal is’ to the Washington Post. Meanwhile, another government official is quoted by the Washington Post as saying the Chinese are ‘puzzled and irritated’ by Trump’s tweets and his own administrations unwillingness to agree with them.”
Poulos then revealed, “The Chinese Minister of Finance was crystal clear with their feelings on Wednesday when they called the meeting Saturday ‘very successful’, stating that 90 Days is sufficient time to complete negotiations. At least we can count on China for some clarity as to the state of things, a clarity which may actually lead to a reduction of current tariffs in the long run.”
In conclusion, Poulos stated, “With all the ups and downs of a roller coaster, if the past few days have taught us anything it’s that the market and emotions have no business affecting each other. It’s already hard enough to find long-term positions in a market this volatile without worrying about the President’s latest Tweet. When it does happen, though, it’s best to take a beat, wait for the facts, and then act on them.”
Bill Poulos is the president and co-founder of Profits Run. He is a retired automotive executive with a passion for philanthropy. He holds a bachelor’s in engineering and a Master of Business Administration, with a finance major. He has written many books about successful trading and now lives with his wife in Michigan. Poulos is a regular contributor on Investing, Medium, and Pulse.
About Profits Run, Inc.
Profits Run, Inc. was founded by the father and son duo, Bill and Gregory Poulos in 2001. Traders often say, "Cut your losses and let your profits run." This popular saying is where Profits Run's name derives from. The company's mission is to educate people on safer and simpler ways to invest while properly managing risk.