The U.S. and China plan to sign a phase 1 trade deal on Wednesday.
Once the deal is signed, it will remove a big chunk of uncertainty for the global markets. That opens the floodgates for a lot more investors to come off of the sidelines.
In today’s edition of Market Insights, Jeff Yastine and I discuss why a trade deal is just what the market needs right now.
The trade deal gives the “all clear” to investors.
As the U.S.-China trade war plays out, investments have been held up around the globe.
There’s $3.6 trillion sitting in money market funds right now, and that number has been steadily rising.
Jeff said that money “provides fuel for the markets to move higher.”
The phase 1 trade deal will give companies the certainty they need to make important investments and prepare their global supply chains.
And remember: Wall Street loves certainty.
Investors will begin to dump their shares of Apple soon.
Apple is now nearly a $1.4 trillion company. But while its stock keeps going up and up, there are better investment opportunities out there today.
Jeff recommends one such stock that you need to have in your portfolio today. He said: “I think that’s a great place to put some money.”
Many of the big banks are set to report earnings this week.
The successes (or struggles) of major financial institutions such as JPMorgan Chase are a good indication of where the economy’s headed.
Jeff said: “You can’t have a sustainable rally unless financials are participating (or at least aren’t going in the opposite direction).”
Editor, Profit Line
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