Issue: Phase I trade deal with China looks like it will happen, with a January signature
Implication: Tariffs reduced on $120 billion of goods. 25% tariff still on $250 billion
Issue: Boris Johnson’s Conservative party wins the British Election
Implication: The U.K. could have a plan to leave the European Union (Brexit) as soon as January
Issue: U.S. Stock market climbs to record high on trade deal and Brexit optimism
Implication: Is this a precursor to 2020 market gains or further indication of an asset bubble?
Issue: Boeing indefinitely halts production of the 737 Max, starting in January
Implication: Hundreds of suppliers will be affected. Where do you park 400 jetliners?
Issue: U.S. home-building increased to a 12 ½ year high in November, 1.32 million units
Implication: Low interest rates continue to spark demand for housing
Issue: President Trump impeached 12-18-19
Implication: Market achieves new highs this week. Can you say “Irrational exuberance”?
Merry Christmas and Happy Holidays to all!
