A perennial trade war

A trade war with China seems to be a perennial that just mutates into new forms. The latest is a chip war. 

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A perennial trade war
Welcome to the Know the Difference Minute for Wednesday, July 5th.
With summer here, many people have done some gardening. Annuals are plants you have to replace every year. Perennials keep coming back.
Some issues investors contend with are annuals and others are perennials. Annuals seem to be, hopefully, one-off events that are here today, but gone tomorrow. Let’s hope that things like diseases and conflicts are more like annuals than perennials.
Other issues are perennials. They just keep coming back. A trade war with China seems to be a perennial that just mutates into new forms. The latest is a chip war, and not the delicious potato variety. The US is restricting the export of chips used for artificial intelligence applications. China is responding by restricting the export of key materials used to manufacture those chips. It might affect very specific parts of a portfolio, but not the general landscape.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.