Should interest rates be risen? What about four percent? It sounds small but the potential effects that come along from raising interest rates on China, a country the United States does billions of dollars with annually, could lead to an all trade war. If interest rates do rise, we have a couple of years before they do so. But if these rates do rises a potential death to the bull market could happen.
The U.S conventional trade balance reveals that annually the U.S. has a deficit of 330 billion dollars with china and half a trillion dollars with other countries. Ted Bauman, a writer and financial analysts, studies and writes on the economy, finances and wealth through his newsletters for Banyan Hill Publishing. The analysts believes that cause for the imbalance in trade is due to large corporations fleeing to other countries where tariffs and labor costs are much less.
Ted Bauman has become a respected writer of financial news. Many writers tune in to read his weekly newsletters. His writing lead readers in the right direction of benefiting financially. He has decades of experience working for finance companies and dealing with stocks. His experience has allowed him to guide readers with their investment decisions in the stock market and real estate.
With all of his experience, when Ted Bauman gives a review or outlook on the economy or the stock market, he is often times pointing out good points. For example, when he discusses potential issues with the bull market, he is speaking a possible truth. Many other economists have also agreed and believes that if interest rates rise many issues between China and the United States will arise. Many U.S. corporations earn upwards of a hundred billion dollars a year from doing business with China. If China is hit with higher interest rates, these relationships could be damaged. Damaged relationships between American companies and China could have huge effects on the economy. Ted Bauman like many others could see a retaliation against American companies because of these rising interest rates. This sort of retaliation would cause issues with the stock market.