December 14, 2019
People who remember the 1990s stock bubble and the housing bubble of the last decade know that markets are not always right. But it is nonetheless worth following their response to events to see how ostensibly knowledgeable people see them.
In the case of Trump’s trade deal with China, where the big highlight was an announcement of new soybean purchases, the response was a big thumbs down. While soybean prices did go up by close to 1.0 percent yesterday, they are still around 3.0 percent below November levels and more than 10 percent below highs hit last year. This means that, for now, the markets do not expect Trump’s trade deal to substantially improve the prospects for soybean farmers.
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