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Despite its population of 1.3 billion people and economy on course to be the biggest in the world, China has yet to be a military threat to the United States because of its navy.
But China is trying to change that in a hurry.
And a recent aerial photo captured the scope of China’s fast growing naval development.
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Only days after hitting an all-time high of 28,090.21, the Dow Jones Industrial Average slipped 1.15%, closing Thursday, Nov. 21, 2019, at 27,766.29.
That's a small loss considering that the United States is threatening China over its control of Hong Kong.
With Congress passing the Hong Kong Human Rights and Democracy Act this week, which now goes to the White House for the president to sign or veto, markets could see more profit taking, or they could do what they've been doing: ignoring bad news and moving steadily higher.
Here's what markets are facing as a new front on America's trade war with China opens up...
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The mainstream business news is laser-focused on the trade dispute with China. President Trump's fight with China's Xi Jinping is just about all you hear or read about in the business news.
Even the string of all-time market highs these past two weeks had a tough time getting any press. The pundits quickly got back to talking about tariffs and trade negotiations, as if nothing else mattered.
But there's a much more important story developing right under our eyes, right in America's heartland. One that no one is talking about, probably because it's not very convenient.
Of course, the truth rarely is.
But the consequences for your finances – and for swathes of Americans – could be tremendous… Full Story
But the consequences for your finances - and for swathes of Americans - could be tremendous...
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Like many holidays, Singles Day in China has morphed into a massive moment of commerce heavily promoted by Alibaba Group Holding Ltd. (NASDAQ: BABA).
In fact, it’s become the biggest shopping day in the world. The 2019 version of Singles Day was another record breaker. In 24 hours, more than $38 billion was spent over Alibaba’s network of e-commerce sites.
And the massive amount of money spent on Singles Day is just one of dozens of reasons to buy Alibaba stock despite its high price tag…
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The Dow and S&P 500 both broke three-week losing streaks last week, and the Nasdaq Composite was up for the second week in a row.
We're heading back up closer to all-time highs.
So why do I say this is just a "kind-of rally" with all this seemingly good news?
Last week was an otherwise down week if not for the one positive lifting market on Friday: trade talks.
This was good news, until it was stripped down and re-rated by market judges.
The United States looked like it scored a victory because China agreed to purchase $40 billion to $50 billion in U.S. agricultural products, at least according to the White House, but the time frame of any purchases wasn't immediately clear.
Also, China agreed to open its market to international financial services, again according to the White House. Trump, potentially allowing U.S. banks and insurance companies to expand in China: no timetable there either.
China looks like it scored on account of the United States not moving forward on Oct. 15 with a planned increase in tariff rates to 30% from 25% on about $250 billion of Chinese goods.
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Around the globe, economic fears are rising.
And the threat that stands out the most is China. Last week, China celebrated its 70th anniversary. A military parade showed off a hypersonic nuclear missile that can strike the heart of North America within 30 minutes.
The expected downturn in the market is an excellent time to think defensively.
You want to own stocks that can provide income and share price appreciation. You'll also want to tap into America's booming defense industry.
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Last Friday, a "flash crash" hit Chinese stocks trading on U.S. exchanges. China's $440 billion equivalent to Amazon, Alibaba, dropped 7% in just four minutes.
Those stocks tried to recover early in the week but are now back at the levels hit last Friday.
On the surface, it looked like a small market "blip," or hiccup. But the truth is, this was nothing less than a ferocious salvo of fire in a war, just as surely as if it'd been two destroyers at sea blasting away at each other.
It's a different kind of war, though – economic war.
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Due to the immensity of the U.S. economy and $22 trillion "market cap" of our stock market, it's not very surprising when most American investors prefer not to invest beyond our borders.
But the truth is, owning foreign stocks can not only slash your risk, but boost your returns as well.
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Some of the investment trends we talk about are downright electrifying.
Others, like Keith's "war, terrorism, and ugliness" trend, are nowhere as pleasant, but it's important to grapple with the issues head-on as globally oriented investors.
So far, U.S. financial markets have largely shaken off the mass unrest in Hong Kong, but that could instantly change.
Keith wants to make sure you're ready if it does...
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As the political climate in Hong Kong reaches a boiling point, investors wonder how this will affect the U.S-China trade conflict.
Chief Investment Strategist Keith Fitz-Gerald has predicted what’s coming next as the trade war wages on.
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