The U.S. equity markets recorded all-time highs in November as momentum from trade deal optimism along with a liquidity injection from the Federal Reserve boosted risk assets. In addition, some money that had moved out of equities on concerns about an economic recession and the impeachment inquiry came back in, and some hedge funds that had bet against the market were forced to cover their short positions.

On October 11, 2019 President Trump announced a partial trade deal with China saying ”we have come to a very substantial phase one deal.” On October 13, 2019, President Trump tweeted “My deal with China is that they will IMMEDIATELY start buying very large quantities of our Agricultural Product, not wait until the deal is signed over the next 3 or 4 weeks.”

The “deal” announced in October was supposed to have been signed in November. Yet on December 3, 2019, President Trump said at a NATO summit “in some ways, I think it’s better to wait until after the election” to do a deal with China.

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