Is it a time to get into the stock markets again?

Is it a time to get into or out of the stock market?

After the US-China trade war escalated last Friday, the stock markets in US and China remain silent. And some of my friends are just curious about is it a time to get into the stock markets again. In my opinion, it is so difficult to predict how politics factors affect the stock markets and economies.

While the stocks markets have a lack of information and directions, individual investors should be careful. As China’s economy is slowing and fewer investments opportunities, I do not see any reason for buying stocks in China. Actually, we should reallocate our investments assets instead of putting too many eggs in one basket.

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Would that be the first financial crisis in China after the Open Door Policy?

Stock markets in Hong Kong and China are still shuffling today. Individual investors should take a wait-and-see approach instead of buying more stocks.

If the stock prices keep going down, the bubbles of the real estate markets in China and Hong Kong will burst. The real estate prices are unaffordable for many people in China and Hong Kong for so long. For users, it is not a perfect time to buy flats with mortgage loans this year. Furthermore, if the bearish markets eventually happens in China, that will be the first time for people in China to face financial crisis since the reform and opening-up policy in 1978. Will China’s government have enough experiences to tackle the economic bubbles and collapse? China’s government is considering RMB devaluation to fight against the US tariffs. However, the officers may need to consider the impacts of monetary policy on the baby boomers retirements very seriously. If the assets in China are forced to devalue, that will become a big issue for social stability in China.

Will China fires back?

Trump-Kim summit on 12 June 2018 surprised the whole world especially China. China has been playing a very significant role in North Korea diplomatic relation, however, she may feel a little bit isolated in the summit yesterday.

When everyone is clapping hands for the US President Donald Trump and North Korean leader Kim Jong Un, some may ask where is China, who used to be the key player between the US and North Korea. China is becoming the second largest economy and playing an influential role in global political issues in these ten years. And She was just absent in the summit yesterday. While Singapore was playing the perfect host for the summit, China only provided Mr Kim with aircraft for the trip.

During the presidency of Donald Trump, The US President sparked the trade war with China by ZTE issues and now he strongly sent the message to China that the US has a major participation on Korean Peninsula by this summit. Following the US Federal Reserve rising the interest rates, the global especially emerging markets will focus on the economic influence of the US again. Do the series of events mean that China is still too young to fight against the US?