China and USA seem to be failing at making a deal.
China and USA seem to be failing at making a deal.
Facebook isn’t living up to expectations.
It seems that it is not that easy for the biggest social network in the world to recover after a 19 percent dip that was experienced by the shares of it last month. Investors and traders who were planning to go into the Facebook trading on the low point are very unsatisfied as it seems that earlier it was the surest thing one could do in order to get enormous profits. But right now there is no result to the purchases. Why is that?
Well, it seems to us that Facebook finally lost what it took to recover after the fall like that – trust of the investors. Of course, users of the network didn’t go anywhere, but investors and traders are a totally different story after all. They need to understand the processes that are going on behind the scenes in the business they invest into. But with Zuckerberg’s company that understanding was lost a long time ago. Right after he confessed that Facebook was indeed a huge part in Russian meddling in the US elections of 2016.
What is going to happen next? Well, it is not likely that all those hundreds of millions of users are going to start looking for the new network to socialize in. and let’s not forget that Facebook owns Instagram and Snapchat, so there is next to no chance that the auditorium is going to change. But investors are going to keep turning away. It is said that in the time from the fall until now Facebook recovered only 1 percent of the price. Can you imagine investing in it on the peak of the fall, hoping for profit and seeing only 1 percent of the profit?
It seems that it is happening because the hopes of Facebook were for much bigger number of the investors than was seen by the stock. Failed hopes led us to the situation a lot of investors are going to find themselves in today. The real fear kicks in once we realize that not all of those investors are going to keep on holding onto their shares and wait for them to regain at least 10 percent of the price. In that case we are going to see the selloff of the shares that is going to lead to even more sinking in the shares’ prices.
It seems that there is nothing Facebook can do at this point. Right now it is a waiting game for Zuckerberg and his partners. Investors are going to have to look for the new trust with the network and its stock. But right now getting into Facebook trading is a bad idea as there is no certainty to whether the stock is going to grow or the selloff will be on the way.
New tariffs?
We were do hoping for the trade-tension relief between China and the USA. But, alas! It seems that the problems with trading between the two countries are going to continue as the meeting that took the place yesterday between Trump and Jinping seemingly didn’t help the situation.
The United States and China seem to only have escalated their tension and the new package of tariffs was imposed on China. But United States didn’t really leave the situation without an answer and tariffs are now taking down about 25 percent of 16 billion worth of goods from both sides. But who can benefit from something like that? It doesn’t seem to us that it is quite clear now that neither dollar nor yuan both onshore and offshore like the current situation. Economies of both countries are taking hits from the tension and trade volumes around the world are sinking.
The feeling that the United States every time hope that China will just roll with the tariffs and leave everything with no answer isn’t letting go of us. Bu the thing is that China will never agree to leave the new oncoming tariffs with no answer. They will always answer. And right now it seems that China is it the winning situation here.
You see, China is constantly looking for new partners and wants to find new fields to succeed in. America, on the other hand… Trump slaps every single partner of the US with tariffs and only agrees to renegotiate terms when is slapped back. The example with the EU speaks for itself. All of that points to two different approaches to the situation. Trump wants the US to be fully independent from the rest of the world, whereas China wants to substitute the United States partnership with deals better and more profitable, with that even stimulating the economies of the potential partners.
These two very different approaches to the existing situation are the perfect description of the eco0nomic philosophies. And here and now we are to decide who we want to work with and whose approach to support.