Silver linings amid the chaos; Buying stocks ahead of recovery in 2020

Stock markets have fallen sharply over the last month after president Trump surprised the world (and his closest advisers) by announcing a new 10% tariff on a wide range of Chinese goods. He was frustrated that the US Federal Reserve's July interest rate cut, the first in ten years, was only a quarter of a percent. We suspect he wants to see more aggressive interest rate cuts this year to boost the US economy ahead of the November 2020 Presidential Election and thinks announcing new tariffs is a way to get them. This is a dangerous tactic. Business confidence was already at a low ebb ...