Jeff 6:54 am on Tuesday, August 13, 2019

Headline sensitive, anyone?

BREAKING: Stocks jump to session highs, Apple surges more than 4.5% after USTR removes items from China tariff list, delays some others including those on cell phones and laptops https://t.co/4gGcxyFOnV pic.twitter.com/AMmid6LZJY

— CNBC Now (@CNBCnow) August 13, 2019

https://platform.twitter.com/widgets.js

fuzzballl 6:56 am on Tuesday, August 13, 2019

Can’t see that kind of stuff coming. Getting ridiculous.. 🙂 🙂
hcgdavis 8:25 am on Tuesday, August 13, 2019

Not to get political but can’t figure out why this administration thinks 18th century economics will work now. Also China (Xi) is a dictator with a socialist economy. They can just wait until the next election and eventually these stupid ideas will go away.

Also don’t know what video game consoles have to do with national security 🙂
- Jeff 8:41 am on Tuesday, August 13, 2019
  
  To avoid getting political you can explain your concerns with policy and how it might affect the market, rather than mentioning the people or the administration. Also, the video game issue is not related to our trading!
  - hcgdavis 9:25 am on Tuesday, August 13, 2019
    
    Some people trade EA for video games 🙂 and NVDA supplies the chips/drivers.
    
    But to answer, most companies (US or otherwise) source products from multiple suppliers. Any tariffs affect production at multiple levels. Additionally the tariff is not paid by the country that the tariff is applied to but by every American in the form of higher prices and taxes. Similar to an inflation shock.
    
    I don’t think that anyone disagrees that China is not a fair trading partner. Because of the mentioned above dictatorship, piracy issues, theft of intellectual property, socialized structure and state run businesses, they can afford to lose money without the market place putting them out of business. Also there is manipulation of currency, made up quarterly reports, and general lack of transparency and that keeps me from ever investing in any Chinese based company. Are the profits real or made up?
    
    Also because Xi is a dictator he does not have to worry about policy or re-election and a change in trade policy by the US or any other country is not going to change a political system that has been in place for 5000 years.
    
    Hope that explains it better but in full disclosure this tariff nonsense has cost me more trading profits than just about any other market shock. At least now I know how to hedge it and can keep the losses contained and actually make a few $ off it. Still increases the difficulty factor in trading short term.
    
    Stay hedged would be my best advice for anyone in the market.
    
    Back to work for me, thanks for the update, did not see what the news was until I checked in.
    - Jeff 9:36 am on Tuesday, August 13, 2019
      
      I don’t necessarily agree or disagree with anything here. I was only responding to your concern about avoiding politics.
      - hcgdavis 9:43 am on Tuesday, August 13, 2019
        
        Sure, I try to stay out of politics but they are costing me money