Trade wars and ETFs: let the battle commence

Author: , Post Date: December 2, 2019

Trade wars and ETFs: let the battle commence

Excerpt from Informa Connect (KNect365)

by David R. Kotok

Cumberland's David Kotok on Bloomberg Radio

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.


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