NOTE ON THE US/CHINA TRADE “WAR”
MAY. 8, 2019
It seems the adage of “Sell in May” might be true but given the current state of politics if you sell anything you will be slapped with a tariff. May was a brutal month for equities as the JSE All Share Index lost close to 5% for the month due to trade tensions between the US and China. The war of words (or tweets) between the Trump administration and China threatens to break out into a full-scale trade war. The situation has been exacerbated because markets had earlier priced in a short-term resolution to trade tensions on the back of emollient words from both sides in recent week.