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US-China trade war

Discussion in 'Investing' started by TomB16, May 15, 2019.

  1. TomB16

    TomB16 Active Member

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    I will opine on the subject and invite discussion.

    I think the trade war is good for two reasons:

    1) Asymmetrical trade between the US and China has been going on far too long

    2) It's a great opportunity for long term investors to pick up equities at a discount


    My heart goes out to people negatively impacted by this conflict but this forum is about markets and opportunities so I am sharing my point of view from that perspective. As investors, we should approach every event with the question, "how can I profit from this?"

    What do you think about it?​
     
    OldFart likes this.
  2. StockJock-e

    StockJock-e Brew Master
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    I have mixed feelings.

    There is a lot that our two countries need to sort out, like IP protection, but at what cost to the stock market and economy?

    The big fish who need strong IP laws in China have billions of dollars in the market, but they also have potentially billions in potential profits if stronger IP laws are enforced. These people will burn the stock market to the ground and bash this economy into a depression if it means future profits.

    In the short term the smaller fish with shorter time frames will suffer if the stock market starts accelerating downward.
     
  3. OldFart

    OldFart Well-Known Member

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    Chinese have the 2nd largest economy, built by the USA & Europe.
    They now need to stop acting like spoiled children and act responsibly, or get treated like Russia and have their economy kicked to the curb.

    We've had enough of their computer hacking, stealing technology, currency manipulation, back peddling on US / China agreements, etc. Enough is enough.
     
  4. hitman

    hitman Active Member

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    T
    Their economy is being built globally not just by the USA and Europe they are in Africa, Caribbean and Central America. They also did not go for QE this is why they are gaining strides and are no longer laggers their planning is long term(10-20yrs) ahead and not short term even Jack Ma said it when he was in the USA for a conference.
     
  5. StockJock-e

    StockJock-e Brew Master
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    We have been avoiding a trade war with China for decades now because the short term pain (1-5yrs) or a real tradewar will be potentially devastating to large parts of our tock market and segments of the economy.

    There is no debate about whether or not China has been playing fair, we know the answer. The question is whether or not our economy is in a position where we can have this trade war and come out of it reasonably unscathed.
     
  6. hitman

    hitman Active Member

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    This is a cyclical cycle that is playing out between USA and China touted as a trade war blah blah China is the bad guy. The USA created a two tier monetary system in 1873 to accommodate trade with China who was on a silver standard rather than gold. The US began to mint two types of silver dollars the " Trade Dollar" which was used to make payments to China cause their standard was different from the West. The idea was promoted by silver miners because the price of silver began to decline due to increase mining efforts in the western part of the USA. The silver miners donated huge money to the Democrats to support the price of silver which by the way nearly bankrupted the USA by 1896 and gave the Democrats the name " Silver Democrats ".
     
  7. OldFart

    OldFart Well-Known Member

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    China wasn't in Africa, Caribbean and Central America back in the 70's when Nixon decided to talk them into opening factories there. This was all recently in the past 10-15 years.

    "their planning is long term(10-20yrs)" -> This is the same thing they used to say about Japan. Chinese didn't invent it, it's an Asian philosophy. It also used to be a western thing, but we lost that a LONG time ago....lol.
     
  8. hitman

    hitman Active Member

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    LOL....'70s.... 10 - 15yrs if my math serves me that would put us to about 2004, 10 - 20 would put us at about 2000. Asian philosophy and China is where. Come on oldfart you are smarter than this.

    What we are witnessing right now is a shift of power and its not looking good for the Western world. Look at the mess Europe(EU) is in they are done.
    " We lost that a long time ago " are you referring to the USA if it is and it seems like it, correct me if I'm wrong..... this would be a great discussion topic.
     
  9. OldFart

    OldFart Well-Known Member

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    I also thought you were smarter than that:

    Nixon's 1972 China visit:
    Nixon dubbed his visit "the week that changed the world", a descriptor that continues to echo in the political lexicon. Repercussions of the Nixon visit continue to this day; while near-immediate results included a significant shift in the Cold War balance—driving a wedge between the Soviet Union and China, resulting in significant Soviet concessions to the U.S.—the trip spawned China's opening to the world and economic parity with capitalist countries.
    https://en.wikipedia.org/wiki/Richard_Nixon's_1972_visit_to_China

    Chinese financing in Latin America is changing. After becoming a major source of capital flows to Latin America and the Caribbean over the past 15 years, a more diverse range of investors has surfaced, interested in more than simply channeling resources towards infrastructure, governments and state companies.
    https://www.americasquarterly.org/content/how-chinese-investment-latin-america-changing

    The "shift of power" you're referring too happened because of the last four idiots we had in the White House ( Bush, Clinton, Bush, Obama).

    As for Europe, that's another topic of discussion. I agree, they're fucked right now.
     
  10. OldFart

    OldFart Well-Known Member

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  11. hitman

    hitman Active Member

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    Come on oldfart you are smarter than this.

    First of I wasn't being condescending to you oldfart if you feel I came across that way my sincere apology. I was expecting that you would hit me back with China rather than Asia since we were talking about China.
     
  12. hitman

    hitman Active Member

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    This was meant for #8
     
  13. OldFart

    OldFart Well-Known Member

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    I was just giving back what was thrown at me. No insults, just poking fun at each other. At least, that's how I took it anyway.
    No apology required.

    As for the "china vs asia", you totally lost me there....

    As for europe, we agree 100%. Unless they get their heads out of their asses, they're fucked.
     
    #13 OldFart, May 17, 2019
    Last edited: May 17, 2019
  14. TomB16

    TomB16 Active Member

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    Is there a way to profit from this trade war?
     
  15. OldFart

    OldFart Well-Known Member

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    Your answer # 2:
    2) It's a great opportunity for long term investors to pick up equities at a discount
     
  16. T0rm3nted

    T0rm3nted Moderator
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    I would think day-trading volatility based on Trump's twitter account could be profitable
     
  17. OldFart

    OldFart Well-Known Member

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    you gotta be quick and glued to your screen....lol.
     
  18. StockJock-e

    StockJock-e Brew Master
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    Ive suggest this in the past, we should pool our money into a bot that makes trades off Trump's tweets! :D
     
  19. OldFart

    OldFart Well-Known Member

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    Trump-o-trades....algorithm....we'll get rich!
     
  20. TomB16

    TomB16 Active Member

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    Make trading great again.

    I'm watching FXI and a few other Chinese based ETFs. If I can get near the bottom, it will be a great long hold.
     
    OldFart likes this.

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