Communist China Takes a Big Huawei Bite Out of Tim Cook’s Rotten Apple and Bears Win Another Wall Street Week

Peter Navarro’s Market Outlook for the Week Ending September 9, 2023

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Hi.  Peter Navarro here with my weekly economy and market rap for the week ending September 8, 2023.

As loyal readers know, for the last month, I’ve seen risk more to the downside than up in the stock market based on the ongoing battle between two opposing forces:

On the faux bullish side, we have a profligate, Biden-induced Keynesian over-stimulus driving artificial growth in the US economy while hurtling us towards a fiscal cliff.

On the real bearish side, we have a Biden-induced bearish inflation driving up interest and mortgage rates and choking off both capital investment and activity in interest-sensitive sectors like housing.

To understand these two opposing forces is to understand it is only a matter of time before the bears maul the bulls.

From an historical perspective, my bearish leanings stem from the fact that I am old enough to have been an adult in the 1970s; and I know at both a visceral and analytical level that Biden’s stimulus is driving us into a prolonged 1970s stagflation scenario. 

The next stage of this scenario, already unfolding, is a wage-price spiral that will make it very difficult for the Federal Reserve to cut interest rates anytime soon.  Of course, American workers will be the biggest casualties.

So it was this week that SPXU, the leveraged short of the S&P 500 gained once again for the third out of four weeks in a row.  It is what it is and in these most difficult months historically for the stock market of September and October, everyone should be on high alert for the dreaded market “correction” of anywhere from 10% to 20% or more.  So stay tuned.

In the meantime, the other big story that caught my eye was a twofer in which Communist China is tightening the screws on the sales of Apple iPhones on the Chinese mainland even as China’s pirate predator Huawei has released a new version of its mobile phone with a powerful spy chip capable of tracking anybody on the planet down and scooping up their information on behalf of the Chinese Big Brother government.

Apple now is the new poster child for what a problem I’ve been warning about to any CEO in America who would listen.  When American companies go to China to profit from Xi Jinping’s sweat shops and pollution havens, yes, they may make a mint for a few years.  However, as General Electric and its former CEO Jeff Immelt painfully learned, the Communists will eventually strip you of your technology, transfer it to Chinese competitor and kick your capitalist ass right out of their socialist market. 

Quick aside: I told Immelt what exactly would happen to General Electric years ago when I met him on the floor of the stock exchange.

What happened to GE is exactly what’s happening now to Apple.  It’s  what will inevitably happen to Tesla and Elon Musk, who has pushed all his chips into a massive sweat shop Tesla plant in Shanghai.  Elon, Elon, you have now become the dumbest smart guy I’ve ever met rising above even Larry Summers and Steve Mnuchin.

That’s it for now.  Check out the substack on Monday for some incredible breaking news on my court case.  For now, watch your money and watch your back in Joe Biden’s America.

Peter Navarro, Out.