How Trump's trade war is unraveling the Trump rally

Excerpts below.

By Matt Egan, CNN Business
Thursday, January 3rd 2019, 9:39 AM HST
Updated: Thursday, January 3rd 2019, 9:54 AM HST

Evidence is mounting that the US-China trade war is dealing a blow to the American stock market.

Stocks plunged on Thursday after Apple (AAPL) blamed a big sales miss on slowing growth in China and rising trade tensions.

China's massive manufacturing sector, already under pressure before tariffs hit, has tumbled into contraction. And trade trouble helped fuel the biggest one-month decline in US factory activity since the Great Recession.

"We've reached the point where China and the US are both hurting," said David Kotok, co-founder and chief investment officer at investment firm Cumberland Advisors.

If Trump fails to reach a deal with China, the economies and stock markets of both countries could continue to deteriorate. That is an outcome that neither Trump nor Xi want.

"Trump needs to make a deal because the 2020 campaign has started," Kotok said. "Trump doesn't get reelected with a lousy stock market and economy that has gone into a slowdown or recession."

Read the full article here: CNN Business

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.