Cutting Through The Noise: What to Watch in the Markets
Trade headlines are once again driving the markets.
Chinese Ministry of Commerce spokesperson Gao Feng [said]: "In the past two weeks, top negotiators have had serious and constructive discussions on resolving issues of core concern.
Both sides agreed to remove the additional tariffs imposed in phases as progress is made on the agreement.
A short while after that, Chinese state run news agency Xinhua reported that China was considering removing restrictions on imports of U.S. poultry.
As neither president appears quite ready to meet, both sides repeatedly send positive signals meant to keep that above mentioned glass "half full." It might be interesting to note that the U.S. Treasury Department collected an all-time record $7 billion in trade tariffs for the month of September, up 9% month over month and 59% year over year, as that September 1st tranche of 15% tariffs on more than $110 billion in Chinese imports went into effect, wrote Guilfoyle in his morning column over on Real Money.
But what else do investors need to be paying attention to?
"For one, a lot of a lot of portfolio managers have missed a lot of this move.
They've held back quite a bit.
We know cash levels are higher than they probably should be at this point in the charts.
People at home are saving more than 8% of their paycheck, which is a 10 or 12 year high for Americans.
So we know that people have some money that might be ready to go.
The Fed is adding $60 billion worth of liquidity per month now at the low end of the curve, which only serves to improve or increase valuations for equities, so we basically have a lot of money pouring into the market or should be pouring into the market at this point is going to be probably some kind of chase for performance.
The only thing going the other way is the long end of the curve," said Guilfoyle.
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