About trade talks and Fed’s rates, beware of disappointment

The short-term evolution of main stock market indexes looks like a repetitive loop with a brief period of euphoria followed with a brief period of depression.

It is likely just volatility as usual, however what could be different this time is the extent of the impact politics has over the markets nowadays, with President Donald Trump building up the pressure on Fed’s chairman Jerome Powell on the one hand, with U.S. and Chinese governments affirming they are about to reach a trade agreement without providing clear evidence on the other hand.

While 100 percent of the analysts believe a rate cut is impending, while they deem a U.S.-China trade agreement as impending too, there is a 100 percent chance of a sharp drop in the stock market if something doesn’t happen exactly as envisaged.