Market opens in the green again as optimism about a deal with China seems to keep investors feeling better. It’s still far from clear what a deal would look like and whether it will be significant long-term. But President Trump extended the truce for tariffs beyond the March 1 deadline, meaning more time to cut a deal before Chinese goods get a 25% hit. The Chinese Stock Market surged 5% overnight. Emerging Markets followed suit. It sounds as though a meeting between Presidents Trump and Xi will happen later in March. This week will see a second summit between Trump and North Korea’s Kim. It is far from clear what will transpire. So basically, things are happening, which has been positive for foreign relations, but there is no solid evidence that any major changes are resulting. China and North Korea seem to be happy with these high-level global talks without giving much up. It could be a stall tactic, but the Market doesn’t seem to see it that way. Earnings Season is coming to an end. Brexit is getting kicked out. The Fed is firmly behind the US economy while the rest of the world slows. Stocks just won’t go down. At least for now. We’ve seen this before. It doesn’t usually end well.
Have a great morning,