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U.S. Economic Outlook
I was reading Byron Wien’s September 2019 market commentary and I thought I’d share a few takeaways. But before I do, I’d like to suggest signing up for Byron’s monthly commentary. I read several market commentary newsletters each month, but I find Byron’s is the easiest to read because his writing style is very conversational and the content is straightforward. I’ve never met Byron or had any interaction with him, so I don’t want anyone to think I’m promoting him for personal gain. I just want to let people know about his work because even though he hasn’t come out and said it, I think he’ll be retiring in the next few years won’t be writing his newsletter anymore. His likely replacement, Joe Zidle, writes a monthly commentary, but it’s not as macro-focused as Byron’s.
Key Takeaways:
The sooner China and the U.S. arrange a mutually beneficial trade agreement the better off the world financial markets will be.
Second to the U.S., China is the world’s largest economy. For decades China has been the world’s product manufacturing hub. They are able to manufacture products quickly and affordably. They have also managed to keep their currency (the renminbi) weak relative to other developed/developing nations. As a result, China is a net-exporter, which means they sell more of their manufactured goods than they do purchasing goods from other countries. One…
