So, is a trade deal off the table...for now?
President Donald Trump told reporters in London that a U.S.-China trade agreement may have to wait until after next year's presidential elections.
Speaking to the media during a three-day visit to the British capital, Trump said he had no deadline in mind for a U.S.-China trade pact, adding that it would "probably be better" to wait until the end of the 2020 elections to finalize an agreement, adding any accord would be "dependent on whether I want it."
TheStreet's Jacob Sonenshine and Brian Yacktman, CIO of YCG Investments, sat down with TheStreet to talk about what a postponed trade deal means for the markets.
"Waiting on a trade deal probably means volatility ahead. I mean, the market really just goes in the direction that it sees Trump trending in. So now President Trump is trending in the direction of not getting a deal. So now that's why stocks are down on Tuesday. So you're just going to see volatility based on where Trump's trend is. Of course, longer-term, stocks really are valued on fundamentals. And in order to assess, the market's fundamentals right now, we need to know if we're going to get a trade deal. So still there are no fundamentals to be assessed until we get that. So I digressed to saying 2020 election, we're going to have to look at what kind of candidate we're going to get," said Sonenshine.
Watch the full video above for more on what to expect if the trade deal does, in fact, get postponed.
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