By Jon Dougherty
(TNS) Since President Donald Trump took office and began enacting economically-friendly, pro-growth policies, Wall Street has set one record after another…after another.
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And though Democrats and Leftist pundits attempt to portray any stock market gains as padding the pockets of the wealthy, the fact is there are far more average Americans invested in Wall Street than millionaires and billionaires.
Some 55 million Americans with 401(k) retirement plans are invested in Wall Street, and they have seen their money grow mightily over the past three years of the Trump administration. Tens of millions of others are invested in something other than a work-related plan.
Now, thanks to the president’s continued efforts to get better trade deals for American workers and American companies, the gains that Wall Street have experienced are likely to continue soaring.
In addition to the implementation of the USMCA, the replacement to NAFTA, “Phase One” of the deal the president and his team signed with China is set to take effect, which economists are predicting will increase investment portfolios.
Wall Street’s main indexes were set to hit record highs at the open on Thursday as China’s plan to chop additional tariffs on some American goods by 50% helped ease fears over the financial fallout of the coronavirus epidemic.
Beijing said it would lower extra levies imposed last year against 1,717 U.S. products, weeks after the signing of a Phase 1 trade deal.
The tariff cut follows hefty monetary stimulus by China’s central bank earlier this week to support an economy hit by shutdowns and travel restrictions due to the virus outbreak.
“The fear investors had when the virus first started seems to have abated somewhat,” said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
CNBC noted: “Retaliatory duties on some U.S. goods will be cut from 10% to 5%, and from 5% to 2.5% on others, according to a statement from China’s Ministry of Finance. The adjustments will take effect from 1:01 p.m on Feb. 14, it said, without specifying which time zone it was referring to.”
The statement on the Ministry of Finance website said the move was made in order to “advance the healthy and stable development of China-U.S. trade.” A separate article on the website noted the cut in tariffs was timed in conjunction with a U.S. decision in January to halve tariffs on Feb. 14 for $120 billion of Chinese goods — from 15 percent to 7.5 percent.
As has been the case in all of the president’s trade deals, the benefits are mutual. CNBC noted further:
Markets rallied after the news. Mainland Chinese stocks surged by as high as more than 2%, as did Hong Kong markets. Japan shares rose nearly 3%.
The Chinese yuan strengthened, with offshore last strengthening to 6.9652, and the onshore yuan last at 6.9648.
One analyst says this development could be a sign that China is ready to move on beyond the so-called phase-one trade agreement.
As an incentive to continue leveling the trade playing field, the U.S. has left tariffs in place on about $250 billion worth of Chinese goods.
The tariff regime put in place by the president has also had another positive side effect, as NPR reported Wednesday:
The U.S. trade deficit fell for the first time in six years in 2019 as President Donald Trump hammered China with import taxes.
The Commerce Department said Wednesday that the gap between what the United States sells and what it buys abroad fell 1.7% last year to $616.8 billion. U.S. exports fell 0.1% to $2.5 trillion. But imports fell more, slipping 0.4% to $3.1 trillion. Imports of crude oil plunged 19.3% to $126.6 billion.
The deficit in the trade of goods with China narrowed last year by 17.6% to $345.6 billion.
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