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June 10, 2018 | ‘Dismal’ G7 Meeting Is Just Poker

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

News accounts of the G7 summit have been so dismal that one could begin to doubt Trump will have the tariff problem licked by July.  I’m holding to my prediction that he will, however, but it’s going to take some artful dealing in the meantime to get it done.  Merkel called Trump’s blunt rejection of a G7 communique “sobering and a bit depressing.”  Is Trump just playing poker? Most surely. However, there is room for doubt as to whether Merkel is truly at the point of despair. It will come down to dollars in the end, and Trump would not have raised the bet if he weren’t holding some good cards. Remember, he has already cut tariff deals with Australia, South Korea and Argentina. Europe was bound to dig in its heels deeper, since they really do hate the guy. But Merkel still has blood on her nose from the Iran deal. When Trump walked away from it, so did 400 German companies who evidently would rather do business with the U.S. than with Iran.  To be sure, Wall Street isn’t going to like the news from Europe as the week begins. But don’t rule out the possibility of a strong rally when Merkel and Canada’s Trudeau eventually cave, as seems likely to me.

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June 10th, 2018

Posted In: Rick's Picks

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