The Dow Jones cratered nearly 800 points, the S&P 500 plunged 3%, and the NASDAQ shed about 300 points.
This is all because President Donald Trump escalated trade tensions with China last week by imposing 10 percent tariffs on the remaining $300 billion in imports. Beijing is expected to retaliate by halting new agricultural purchases and slapping tariffs on farm goods recently purchased. Ultimately, China’s retaliation: “On a scale of 1-10, it’s an 11.”
No wonder why President Trump demanded that interest rate cut because it gave him some wiggle room on the economy.
What a disaster.
But while this game of 4D chess is making Trump feel great inside, investors are spooked. They are so terrified that they are jumping into bullion and cryptocurrency.
Already at multi-year highs, gold prices soared another $20 to $1,477.
Bitcoin, experiencing a resurgence this year, topped $11,000 and led gains among the largest cryptocurrencies.
Is the next yellow metal $1,500? Will bitcoin return to its all-time high of $18,000?
Time will tell, but the way things are heading, the odds are definitely in their favor.
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