Art Laffer: Deal with China Could Boost Dow 10,000 Points

Breitbart ^ | 09/05/2019 | Trent Baker

[SaveFerris]

[ Economist Arthur Laffer ]

Is this about the Laffer Curve...?

Oh wait, never mind.

Bueller? Bueller?

[PGR88]

China will come back on their hands and knees and the deal will be one we can accept.

China may not come back for a deal - but it doesn't matter. America has to recognize that China has a mercantilist, centrally-planning Communist government. Trade will always be firmly controlled and manipulated by them, with solely their own strategic benefit in mind.

[TheConservativeTejano]

It will most likely boost Dow 10,000 points, but will do nothing for the American economy. Never forget we are in a trade WAR with China. Have you ever seen 2 winners in any war since recorded history? China can not afford to make ANY deal which balances the trade. Because it will cause massive unemployment in Chinese manufacturing, and chairman Xi will run out to Taiwan by rioting manufacturing workers. Here is what is going to happen....write it down... China will keep on doing lots of negotiating and drag it out past Nov 2020. Their best hope is Biden wins in 2020.

Partner, this is exactly what they want but it will not happen since they lie, cheat and steal whatever they can. Every CEO of American business should be fired immediately if they do business with the Chicoms and data is stolen.

[Tucker39]

Those inscrutible Chinese are not that stoopit; to count on Slow Joe to beat Trump in 2020? Whatever they MAY be counting on, I can’t imagine it’s that.

[SaveFerris]

I suggested to one employer that they were wide open to data theft. Even by domestic companies.

I told the local guys. I should have only told corporate. There were guys up there with functioning brains.

[Lakeshark]

Because it’s the SMART thing for China to do.

I disagree, and I think they are wary of putting their eggs in the basket of Trump losing next year. If they dilly around before the election, hoping for "change", they will only piss Trump off.

They decidedly don't want to make him angry at them. They can see he is going to win again, and they know when he wins he will be able to hurt them more than he already is.

[fuzzylogic]

Based on what metrics?

[entropy12]

It is not what the Chinese are COUNTING on, it is their best option. With president Trump they will not get anything like a good deal. Election is 14 months away, it is eternity in politics. Anything could happen.

[entropy12]

Chinese can read polls which currently favor Biden by double digits over Trump. So the Chinese have “hopes” of Trump losing, or suffering a health episode, and then they can keep screwing Americans for many more years.

[dp0622]

Ah, you’re probably right.

i’m wrong a lot :)

[Mark]

Obama’s economy still strong!(/S)

[billyboy15]

The stock market has not changed in what causes it to move.

Trader look 6-9 months down the road and buy based on perceived earnings of a particular company. Companies regularly issue earnings projections which the traders take under advice when deciding if a purchase is warranted. However earnings projections can and do go awry by events not on the horizon a the time of the original projection.

The stock market is really no different than a Casino money needed within 5 yrs or so should never be invested in stock.

[Lakeshark]

Sorry, the Chinese aren't stupid enough to believe that.

It's not like you're dealing with the average democrat voter who doesn't think much about anything real.

[Lakeshark]

Heh. Me too. Aren’t we all......

[billyboy15]

Markets are not overpriced by any metric I can see. The current P/E of the S&P is about 22 and not overly high by historical standards and actually considered low by some given the state of our economy.

[FreedomNotSafety]

Laffer says a deal with China means more deals everywhere and that expansive view is what would drive the Dow.

Also remember Trump has proposed the mother of all trade deals which is 0. The removal of all barriers on both sides. If that happens 10k is sandbagging.

[Carriage Hill]

https://fortune.com/2019/07/31/yes-stocks-are-overvalued-but-by-how-much-heres-what-history-tells-us/
&
https://www.independentadvisorthayes.com/investing-overpriced-stock-market/
&
https://www.barrons.com/articles/who-says-this-market-is-overpriced-1525716705
&
https://www.marketwatch.com/story/this-stock-market-indicator-hasnt-been-so-inflated-since-the-internet-bubble-top-2018-09-18

Want more?

[Sam Gamgee]

Yes, but I the POTUS should be making deals best for the USA citizen, not market players.

[Sam Gamgee]

I agree. It is nothing more than a casino. Case in point. Netflix. Surrounded by all sides by competitors but trades in 200s PE?

[airplaneguy]

While that may be true, fortunes are made and lost in the market. Just hope you have a strong cash position at retirement when you get done putting money in.