After a mild reaction to the partial agreement reached between the US and China to ease the trade conflict between the world’s two largest economies, investors apparently gained momentum earlier this week and began pulling with a little more intensity by the US indices. The reasons for the renewed optimism were statements by US Trade Representative Robert Lighthizer, who closed the partial agreement stating that Chinese imports of Made in USA products will double over the next two years. Economic data on industrial production and retail sales in China also provided some support for buying pressure as it indicated a possible pickup in the local economy.
The coming days will reveal whether the upward trend is to keep up or as usual which Wall Street Santa will be descending for a final Bulls sprint this year, and part of the move would also be dictated by the rebuilding of portfolios in the “window dressing” process. However, it should be recalled with a 27% gain in 2019 alone, the S & P500 is rapidly approaching to nearly 30% that has been achieved in 2013, the highest since the 2007/8 financial crisis, with the difference growth in Corporate profits reached 15%, while in 2019 profits are expected to be very similar to the previous year.
