The market has been seesawing up and down because of uncertainty surrounding the trade dispute with China. Investors know that the conflicts run far deeper than soybeans. Amidst all the political headlines and wrangling, trade is the paramount issue that matters. Trade is the grease that keeps the global economic wheels turning. Any true deal will take a while to negotiate and implement, so brace for ongoing volatility. But you may have noticed that any upbeat news regarding progress in trade negotiations has sent the market soaring. That is because a little good news goes a long way in a bull market.
The U.S. economy is slowing to a 2% growth rate, which clearly is not in recession territory. The labor market continues to exhibit broad-based strength and the Federal Reserve is trying hard to say all the right things. For a true view into the fundamental strength of the market, however, keep your eye on upcoming third-quarter earnings.
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