Trade wars and ETFs: let the battle commence
Excerpt from Informa Connect (KNect365)
by David R. Kotok
The United States has gotten itself into a trade war negotiations mess.
Will it manage to dig its way out of the hole and will ETFs play a role? David Kotok, chairman and CIO, Cumberland Advisors examines.
China: the enemy?
There is an old adage: “When you’re in a hole and it’s getting deeper, stop digging!” Trump and Co. know they’re in a mess but don’t know how to stop digging, so they have been floundering while the adversary (China) outplays the US.
Now, we don’t defend China. It is an authoritarian regime without electoral-calendar constraints. And the United States has clear competitive and security concerns.
That said, we think the US picked the wrong type of fight and must change its terms to win. We would simply separate intellectual property from soybeans and lobsters and washing machines.
Be very precise on targets. And don’t punish Americans with a sales tax masquerading as a tariff.
Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.
Sign up for our FREE Cumberland Market Commentaries
Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.