The trade war is already over
The Chinese and U.S. economies are likely to slow in 2019, giving President Donald Trump and Chinese President Xi Jinping no choice but to declare a truce in their ferocious trade battle, according to a top Wall Street strategist.
“I think personally that the trade war is coming to an end and there is really nothing Trump can do about it,” Jim Paulsen, chief investment strategist at The Leuthold Group, said in the latest edition of the POLITICO Money podcast. “If you have the United States and China both with very weak economies, the negotiation around trade just evaporates. Neither party has any negotiating power left. They both have to stop what they are doing.”
More broadly, Paulsen said he thought recent market volatility and sharp declines were actually a good thing. He said he believes investors are panicking about a global recession that isn’t actually coming: “One of the good things we’ve got going on, I would say, as an investor, is we’ve got people freaking out. I think that’s a good thing.”