It’s another great FarrCast this week, and Michael kicks it off with Kenny Polcari. Kenny says investors should be worried, but be aware – the conversation has changed and the negatives can start feeding on themselves. Markets reprice when given new information and the pullback on the change of China trade talks is no surprise. Opportunities can arise because the algos and short term trades usually overreact to bad news. You can’t just throw a dart it, but a buying opportunity may be coming.
Dan Mahaffee joins for the second segment and talks about what the President is not doing with China. A cooling off period has begun – how much is posturing and how much is a start of a new cold war? There is no playbook and while both countries want a compromise, there are limits to how far they will go. The impasse will continue over the summer as Dan explains the significance of the Tiananmen Square anniversary to the Party.
Special guest Jack Bouroudjian joins for the third segment – he’s been nothing short of prescient on his previous FarrCast appearances and he polishes up his crystal ball for us. But first, he tells us about his one long term hold that’s worked out for him (33 years!) Jack sees the China trade war as necessary pain to protect IP not just for the short term interests of the markets, but for the health of both economies over the long term. He shares what he sees in the bond markets, more a foreign exchange story than a recession indicator. And Jack’s bullish call on markets for 2020.
It’s the FarrCast: Washington, Wall Street, and The World.
