Small Cap Stocks Rip - How to Profit

Nov 11, 2024

Explore the implications of China's record $1 trillion trade surplus and its impact on U.S.-China relations. The discussion dives into potential trade tariffs and the aftermath of the cyberattack known as Salt Typhoon. There's a deep dive into how economic indicators like inflation and interest rates influence small-cap stocks. Insights into Warren Buffett's cash tactics and the recent flurry of mergers and acquisitions highlight strategic investment opportunities. The conversation wraps up with predictions about upcoming Federal Reserve speeches and market ramifications.

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INSIGHT

China's Trade Surplus Is A Political Flashpoint

China's near-$1T trade surplus raises political pressure for tariffs and trade action from the incoming US administration.
The surplus also enables China to weaponize currency moves, which can materially affect global markets.

INSIGHT

Financial And Cyber Tools As Geopolitical Leverage

Danny Moses warns China can devalue its currency and flood markets, worsening trade imbalances.
He flags the Salt Typhoon cyber attack as a rising geopolitical risk tied to China.

INSIGHT

Tariff Threats Versus Practical Limits

Elizabeth Young Thomas says talk of high tariffs is likely rhetoric and would be inflationary and hard to implement.
She stresses China's greater control over currency and willingness to stimulate, increasing volatility.

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Guy Adami, Elizabeth Young Thomas of SoFi, and Danny Moses discuss the implications of China's near-record $1 trillion trade surplus, potential trade tariffs, and the cyber attack known as Salt Typhoon. They delve into the repercussions of China's economic maneuvers like currency devaluation and their significant gold purchases. The conversation transitions to talk of U.S. economic indicators, specifically inflation and interest rates, with insights into the Fed's actions. They also touch on topics including crypto, small cap stocks, the performance of regional banks, Warren Buffett's cash holdings at Berkshire Hathaway, and Elon Musk's strategic moves. The episode wraps up with a look at upcoming Fed speeches and their potential impact on the market.

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About the Show:

On The Tape is a weekly podcast with CNBC Fast Money’s Guy Adami, Dan Nathan and Danny Moses. They’re offering takes on the biggest market-moving headlines of the week, trade ideas, in-depth analysis, tips and advice. Each episode, they are joined by prominent Wall Street participants to help viewers make smarter investment decisions. Bear market, bull market, recession, inflation or deflation… we’re here to help guide your portfolio into the green. Risk Reversal brings you years of experience from former Wall Street insiders trading stocks to experts in the commodity market.

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