OK, so my opinion of the market is this....
First off, Obama or perhaps Bush Jr should have done what Trump is trying to do now, which is make fair trade deals. U.S. is like one of those people who keeps buying you gifts so you'll be their friend, then one day the gifts stop and you realize you really didn't like that guy so much anyway. We have too long funded other countries, while they brought their goods and services to our country and undercut our prices.
However, for the first time since perhaps Christopher Columbus, China has a good shot to be the big boy trade partner to the world. Trump figured he could coerce China into a fair deal, like he's trying to do with Canada and Mexico, however, we've waited too long. I can see a scenario where the U.S. goes back to the days of Woodrow Wilson and Isolationism again if we can't figure a way to convince countries that have taken advantage of us, that they still want to trade with us, even if they have to pay their fair share.
China can easily be the next super power. Whereas our battle with Russia was one for Space and Military Power, this battle is the battle for economy leader.
So now, Trump and his ego needs to find a way to backpedal, while at the same time maintain (perhaps in his mind) that he won the battle. To be fair, the Democrats will call him out no matter how this goes and paint it as a Trump catastrophe.
Now, with all that said, we NEED a retracement in the market. Due to our political situation at the moment, if the market falls, the Democrats will blame Trump. If the market rises, we will become incredibly overvalued, and the fall will be much worse than it would be today. I can give reasons why the market has become totally overvalued, but that's for another post.
There used to be a time when Presidents (and the country) understood that there was an "acceptable level of casualty" for the good of the overall country. Men went to war to defend our country, knowing full well what was at stake. Today, many feel they deserve benefits at no risk or effort from themselves, all the things their parents have and much more. Our President feels "we must win so much until we get tired of winning". This just isn't sustainable.
Ironically, Thanos from the Avengers movies understands this as well.
Just my opinion, of course.
AI
