The start of a potential currency war might be exceedingly deflationary (especially in third-world countries), but U.S. investors should be cheering.
With stronger Chinese exports, prices in the United States will fall accordingly. If the Federal Reserve follows its mandate of 2% inflation, the central bank can lift interest rates in September, or perhaps anytime soon… but how can this happen when prices are falling?
Short answer: it can’t.
A delayed rate increase will be very bullish for U.S. stocks. There will be distinct winners in a world where China works to reassert its trade-leader status. These winners will likely outperform the rest of the market and do so for the foreseeable future.
Here are the three to consider buying: