It's pretty easy to craft some horrifying scenarios now that we have labeled China a currency manipulator.
But let me ask you something: Do you think it is not?
Does anyone think it isn't?
And this is where it would help if our allies were to agree with our Treasury Secretary, because they have much more to lose from a devaluation of the yuan than we do, particularly the Germans. That nation is an export-driven nation. We are an import-driven one. China is a huge market for them, and I think it is a little ridiculous to think that this is just the U.S. vs. China.
Now there will be consequences unseen about this declaration. And I saw stocks cascading as I left -- as people try to estimate how low individual stocks in the S&P 500 will be.
We will take out Monday's lows at the open and people who were positioned to buy or bought in the last hour will be and are on the wrong side of the trade.
I found myself thinking Monday evening that there is nothing to be done, but wait. We put a little money to work Monday -- barely any, given that the market was down so much.
How much of the decline was a belief that this currency manipulation label could happen given that the President tweeted that's what China is? Did someone think that Treasury Secretary Steven Mnuchin would arrive at a different conclusion from his boss? Who do they think he is, Hamilton?
I say let 'em drop 2%-3%, and then do another round of buys. We will be ready, but honestly, isn't this a totally Captain Obvious action?
It sure is easy to blow this one out of proportion, like when our debt was downgraded by the S&P.
Maybe I shouldn't resist, and I should join the fray of those who are panicking.
Then again, panic is not a strategy
