China-US trade negotiations continue to roil financial markets as bouts of positive news initially make US stock prices soar, and then fall precipitously when yet another war of words ensues. As the rhetoric between the world’s two largest economies grows ever more vitriolic, market price swings intensify. Although a solution is still more likely than not, the process is taking longer, and the outcome less certain, than was foreseen at the outset.
Adding to US concerns is China’s vast portfolio of US debt. China holds $1.1 trillion of US government IOUs, aka Treasury bonds, making them the largest foreign owner of US sovereign debt. The worry….
