What Traffic Jams on Mt. Everest Teach Us About the Market

It seems that China has been in the headlines for all the wrong reasons lately. First, there were concerns over China’s rapid and aggressive militarization of the South China Sea, an effort that could threaten U.S. allies and their interests (not to worry, the U.S. has an ace up its sleeve). Next, trade relations soured between the U.S. and China as Presidents Trump and Xi exchanged vollies of tariffs back and forth, leading to significant pullbacks in the market.

But most recently, the alarming headlines concerning China have come from Mt. Everest, in the disputed Chinese territory of Tibet. Over-commercialization of guided treks up the world’s tallest mountain have lead to log-jams at the peak, with deadly results.

You see, humans were not designed to climb that high. I’ll spare you the grisly details of what happens to a person above the “Death Zone” (approximately 26,247 ft.), but basically if you spend too long above it, the air becomes too thin to survive. With too many mountaineers attempting to reach the top in a small window of time, the delays have driven the death toll up to 11 climbers in 2019.

Just as climbers face life-threatening dangers ascending natural wonders of the world, investors must account for the threats accompanying our incredibly high markets, especially looking out for the possibility of perilous drops like the China trade deal.

So while solving the issue of traffic on Everest could take years of reforms, this weekend does have the chance to at least start resolving a geopolitical jam troubling China headlines


The Three Most Important Events for the Weekend Ahead

Today, I’m going to mix things up a bit and bring you a mid-week market update because I want you to be prepared for the some of the biggest market moving events that are set to occur this weekend.

As you’ve likely heard the biggest affair this upcoming weekend is the G20 Summit in Osaka, Japan. The summit will host a series of economic meetings between some of the world’s largest economies – including the long-awaited meeting between President’s Trump and Xi as they attempt to settle the trade war that has been raging for the last several months.

I’ll be going over what I see as three of the most likely outcomes of the meetings, and what they mean for the market.

We’ll also take a look at another asset class that investors have been flocking to amid all of the volatility in stocks…

Bitcoin.

In an article earlier this month, I explained how the stock market hates a parabola (large, sharp movements on a chart). I gave an example of how stocks can come crashing back down to Earth if they fly too high, too fast – like Beyond Meat (BYND) did recently after its IPO.

I believe the same is true of the most recent rise in Bitcoin prices, and I’ll show you exactly why I feel now is the wrong time to add Bitcoin to your portfolio.

Click here to watch


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