Dividends and Trump praises tariffs, China growth slows to 27 year low

In mid July, President Trump read the tea leaves on China’s growth and believed his tariff policy was the main reasoning for slowing of China’s growth. As he believed in the power of tariffs, he suggested more could be coming.

In an article by Susan Heavey and Jeff Mason of Reuters, China’s growth is now 6.3% which although robust to most economies of the world, is the weakest pace in 27 years.

The President believes his tariff policy is working, and does not understand why the Chinese leadership have not worked harder to buy more US agricultural goods. In China, sources familiar with the state of negotiations insist the Chinese did not make firm commitments to do one thing or another.

Linking to dividend paying stocks, generally as investors you pay attention to what the senior level of administration of the company says the company is doing. With the US government administration under President Trump it seems it is necessary to double check the firm commitments not just what is said. One of the reasons, it is easier at the corporate level is if the President says a firm commitment is made and the stock price reacts, if the firm commitment is not made, the company can be sued by the Securities and Exchange Commission. Who would sue the President? One has to wait till the next election if things in Washington change.

There are more questions than answers, till the next time – to raising questions.

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