Your Future Investments Depend on China's Next Moves in Hong Kong

Shah Gilani

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…

The Steps Ahead for the United States and China Are Shakier than Ever

The House of Representatives voted 417 to 1 to pass their version of the Hong Kong Human Rights and Democracy Act. The Senate on Tuesday passed its version of the draft bill unanimously. The House quickly reconciled its bill in alignment with the Senate's bill.

It now goes to the president to sign into law or veto.

While President Trump is expected to sign the bill, he could veto it.

What's at stake for the president is his leg up on the Chinese as the two negotiate their way out of the trade war launched by the U.S. last year.

Congress can force the bill into law if the president vetoes it because it has a "veto-proof" majority to override a veto.

In terms of his China trade war strategy, the president could veto the bill and explain to the American public that while he supports it 100%, he doesn't want a law that infuriates Beijing to impact his chances of getting everything he wants out of China in their trade war negotiations.

Knowing the bill will be passed into law over his potential veto, let's the president show Beijing that he's willing to work with them, at the same time explain to the American public his support for democracy in Hong Kong.

However, that's not likely, because the president, moreover, wants the American people to not doubt his resolve to uphold American values globally.

Shah Gilani

About the Author

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Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.

He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.

Shah founded a second hedge fund in 1999, which he ran until 2003.

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Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.

Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.

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