Diversification in a sea of troubles

Tariffs

After President Trump's August 2 announcement of America's imposition of an additional 10 percent tariff on $300 billion worth of Chinese goods, the tension between the two nations escalated. The U.S. has already levied a 25 percent tariff on $250 billion worth of Chinese imports. The latest tariffs were aimed at gaining political kudos and showing the mood of the U.S. The plan was not well thought out. China retaliated on August 5. The People's Bank of China set the yuan's daily reference rate below seven to the U.S. dollar for the first time in more than a decade. The Dow Jones Industrial Average lost 2.9 percent on the sell-off, its worst day of trading this calendar year. The Chinese move caught the money markets off guard. They have grown accustomed to the steady appreciation of the yuan against the greenback. The retaliation caused repercussions worldwide. China's goal was three-fold: 1. Show markets the rising power of the yuan 2. Weaken the U.S. dollar's long stranglehold over other currencies 3. Demonstrate the pulling power of its own economy. What should you do as a business potentially caught in the storm between the two giants? Diversify. Call Ryan at Strategy Hubb # hashtagtradewars hashtagglobaldisruption hashtagasianmarkets hashtagbusiness hashtagstrategy




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