{"id":8237,"date":"2019-09-16T15:29:16","date_gmt":"2019-09-16T15:29:16","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=8237"},"modified":"2022-02-26T13:07:11","modified_gmt":"2022-02-26T13:07:11","slug":"google-antitrust-probe-fed-studies-trade-war-china-growth-questioned","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/google-antitrust-probe-fed-studies-trade-war-china-growth-questioned\/","title":{"rendered":"Google Antitrust Probe, Fed Studies Trade War, China Growth Questioned"},"content":{"rendered":"\n<p>In today\u2019s Steady\nInvestor, we answer some of the top questions on investor\u2019s minds such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Is\nChina\u2019s economy truly growing as fast as it claims?<\/li><li>What\ndoes the antitrust investigation against Google mean?<\/li><li>What\ndoes the Fed\u2019s new study say about the economic impact of the trade war?<\/li><\/ul>\n\n\n\n<p>Read on to get the\ndetails!<\/p>\n\n\n\n<p><strong>New Fed Study\nMeasures Economic Impact of Trade War \u2013 <\/strong>A new Federal Reserve study was\nreleased this week, as the Fed worked to quantify the economic impact of the\ntrade war. Readers should note that these types of studies notoriously miss the\nmark in projecting hits to growth, with perhaps the best example of erroneous\nprojections historically coming from the independent Congressional Budget\nOffice (CBO). In short, the Fed\u2019s findings should be noted, but not taken at\nface value. The research pegged the hit to economic growth in 2020 at -1%,\nwhich under current circumstances would mean cutting growth essentially by\nhalf. One relevant investor takeaway from the research, however, is that the\nFed is likely to use their findings to inform monetary policy on a going\nforward basis. The next Fed meeting is on September 17-18, where\nmarket-watchers largely believe another quarter point rate cut is due.<sup>1<\/sup>\n<\/p>\n\n\n\n<p><strong>China Takes Steps to\nBoost Economy \u2013 <\/strong>Big news from the People\u2019s Republic of China last Friday,\nas the government announced it would reduce the reserve requirements for banks\nby a half percentage point. \u2018Reserve requirements\u2019 represent the amount of cash\nthat a government or central bank requires a bank to keep on hand relative to\nliabilities, so that in the event of a crisis or a downturn the bank will be\nable to stand on its own two feet. Following the 2008 global financial crisis,\nthe U.S. raised reserve requirements for banks substantially but have tempered\nthem slightly since. In China\u2019s case, lowering the reserve requirement could\nmean freeing up $126 billion into the financial system, which banks can use to\ntake make loans and take risks \u2013 two key contributors to economic growth.<sup>2<\/sup><\/p>\n\n\n\n<p><sup>______________________________________________________________________________________________<\/sup><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-deans-list?source=blog&amp;medium=website&amp;term=steadyinvestor_blog_2019_9_16&amp;content=deans_list\">Download Our Dean\u2019s List of Investment Strategies!<\/a><\/strong><br> \u00a0<br> You can\u2019t predict how these events will affect the economy or when the next downturn will occur. But the right investment strategy can make a huge difference in preparing your long-term investments for success.<br> \u00a0<br> To help you learn more about strategies that cater to different investment objectives, we have created our Dean\u2019s List of Investment Strategies.\u00a0<strong>Our Dean\u2019s List describes five of our investment strategies that are ranked in the top 9% of their respective classes according to Morningstar<\/strong>\u00a0(as of 6\/30\/19).<sup>3<\/sup><br> \u00a0<br> If you have $500,000 or more to invest and want to learn about five of our top strategies, click on the link below.<br> \u00a0<br><a href=\"https:\/\/go.steadyinvestor.com\/arrow-deans-list?source=blog&amp;medium=website&amp;term=steadyinvestor_blog_2019_9_16&amp;content=deans_list\"> <\/a><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-deans-list?source=blog&amp;medium=website&amp;term=steadyinvestor_blog_2019_9_16&amp;content=deans_list\">Learn More About Our Top-Ranked Strategies!<\/a><sup><a href=\"https:\/\/go.steadyinvestor.com\/arrow-deans-list?source=blog&amp;medium=website&amp;term=steadyinvestor_blog_2019_9_16&amp;content=deans_list\">4<\/a><\/sup><\/strong><\/p>\n\n\n\n<p><sup>______________________________________________________________________________________________<\/sup><\/p>\n\n\n\n<p><strong>48 States Band\nTogether in Antitrust Investigation of Google \u2013 <\/strong>The biggest technology\ncompanies continue to feel the heat of increased regulatory scrutiny. In a\nmajor announcement this week, 48 Attorneys General \u2013 led by Texas AG Ken Paxton\n\u2013 have joined together for an antitrust investigation into Google\u2019s practices\nas they relate to online advertising markets. Website publishers and small\nbusinesses have been complaining for some time that they have no choice but to\nuse Google\u2019s ad services, since the company owns and operates the technology\nfor placing ads online. Google not only rakes in revenue from placing ads on\nits search site, but also by placing ads on other sites across the internet\nthat often \u2018follow you around\u2019 as you browse. As state Attorneys General\ninvestigate Google, it is also in the crosshairs of the Justice Department,\nwhich is looking into the actions and business models of Google, Facebook, and\nAmazon. Only two states, California and Alabama, declined to join the antitrust\ninvestigation.<sup>5 <\/sup><\/p>\n\n\n\n<p><strong>Is China\u2019s Economic\nGrowth as Robust as It Claims? <\/strong>The validity of China\u2019s GDP growth figures\nhas long been an interest of economists around the world, and there is a\ngrowing chorus that the second largest economy in the world has been inflating\ntheir numbers. Researchers and economists have been searching for new ways to\ncollect hard data on China, from analyzing corporate profits to taking a closer\nlook at tax revenue, rail freight, property sales, exports, and other data that\nChina\u2019s government may have a difficult time altering (i.e., <em>private <\/em>sector data). By some estimates,\nChina\u2019s economy could be growing at half the rate it claims to be, which would\nmean economic output more in line with U.S. growth rates.<sup>6<\/sup> &nbsp;The end takeaway here is not necessarily to\ntake claims of a much weaker China at face value, but rather to acknowledge\nthat on balance, China is weakening. <\/p>\n\n\n\n<p>There is no way to know exactly where the market\nis headed or how these stories will pan out, but finding the right investment\nstrategy can make a huge difference when managing the highs and lows of the\nmarket. To help you learn more about strategies that cater to different\ninvestment objectives, we have created our Dean\u2019s List of Investment\nStrategies.<sup>7<\/sup><br>\n&nbsp;<br>\nOur Dean\u2019s List describes five of our investment\nstrategies that are ranked in the top 9% of their respective classes according\nto Morningstar (as of 6\/30\/19).<sup>8<\/sup>&nbsp;If you have $500,000 or more\nto invest and want to learn more about these strategies, click on the link\nbelow to see how they could potentially benefit you.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>48 states join Google antitrust action, China loosens bank regs, Fed looks at impact of trade war<\/p>\n","protected":false},"author":3,"featured_media":7426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=8237"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8237\/revisions"}],"predecessor-version":[{"id":10708,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/8237\/revisions\/10708"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=8237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=8237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=8237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}