Take profit as tariff pause triggers SP500 rally
I see little odds for the U.S. and China to address their fundamental conflicts of interests in 90 days for many reasons. For example, I feel the electronics supply chain and also trade of rare earth elements are viewed by both countries as an issue of national security. Both countries have been trying to resolve these issues for years and have not found a sustainable solution yet. I see little chance for a fundamental solution to emerge in the next 90 days.
In addition, leaders on both sides also need to consider the prevailing sentiment in their own country. As Warren Buffett explained to an 11-years boy in this following video, tariff is not only an economic issue but also a political issue as lower tariffs can hurt many people in very tangible ways, but their benefits are often invisible.
11 years old boy questions Warren Buffet and Charlie Munger on Tariffs
https://youtu.be/0tQQr7RGf0I
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