Gold on bullet train!
Lifetime Membership What a havoc! Donald Trump’s aggressive tariffs upended the entire world trade order and sent global stock markets into huge turmoil for the past weeks. In the ensuing chaos, US stocks were walloped as US tariffs on Chinese goods hit a whopping 145% while China retaliated with 125% tariffs on US goods. The explosive trade war between the top two global economies sent investors fleeing to gold, turbocharging gold price to high heavens in the process. At the point of writing, gold price hit a record high of US$3,250 an ounce.
The last global trade war took place in 1930 and led to World War II. Given that this generation of investors have not lived in the era of global trade war, investors must not be reckless and enter the market with a view of buying stocks on the cheap. There is a real risk of catching a falling knife. In my view, a disruption in the global trade system is more complicated than a financial crisis and could take years to play out due to the intertwined nature of the trade system between countries.
The tit-for-tat tariffs between US and China have led to claims from analysts that recession is on the way.
Read More