Chinese Trade Drama: Favorable Conditions for the Investors
A lot of people are beginning to wonder whether or not this is a good time to invest. Normally, the best time to invest is when stocks are down, and the company has nothing to do with it.
However, this does not mean that the investors wait for a more perfect time to invest. Making small investments can prove extremely beneficial in the long run.
In 2018, the US economy produced goods and services worth $20 trillion. An increase in tariffs on Chinese goods by President Donald Trump will directly impact 1% of the economy.
Consequently, the economy will not manage to grow in the same way as it should have. With unemployment at 3.3%, the economy is facing some challenges. Slow growth will not be that bad as it will keep the inflation under control for a long period of time.
When it comes to resetting trade relations with China, this is not at all a high price to pay. It is time that China must be treated like the 2nd largest economy in the world. They have come a long way to establish for themselves a leading position, compared to the developing country they once used to be. Furthermore, China does not need the favors most developing countries are in dire need of, in order to stabilize their economy.
China is a $14 trillion economy that has the potential to compete with the US. Do not wait to invest if you don’t have a big amount of money at your disposal, or until China and the US reach an agreement.