Shocker: Trade Delayed
I have been adamant that everything you hear about an imminent trade deal is fanciful. The idea that Presidents Trump and Xi are going to come to an orderly accord is totally out of keeping with both men.
But there is good news. There are plenty of stocks that have been thrown away for several weeks because of a belief that the Fed and a trade deal will avoid a recession.
I predict a swift comeback of the recessionistas is now on tap.
I also think that there is a chance for a revival of the cloud kings because they do well in a slowing economy.
I don't know how fast I can be right here. But focus, once again, on dumping the oils, go light on the heavy cyclicals, revert to the drugs (AAP names Novartis (NVS) and AbbVie (ABBV) , and also Merck (MRK) ) and scoop up some PepsiCo (PEP) to play this rotation that will, I think, most certainly become the way of all trading.