Bond yields are diving this morning as China retaliates big time to the US tariffs with big ones of its own. Bond yields are diving as they are convinced the US economy will be unable to survive this trade war with the world without the support of multiple rate cuts by the Federal Reserve. Investors know what the Administration does not that no one wins a trade war. The only survivors are those who move money from stocks to short-term bonds. This has become a real war which no one can win and where many smaller countries that rely on US trade are facing economic annihilation. Sure we can stop trading with them, but we will just have to provide them with humanitarian aid after we wreck their livelihoods and render their citizens penniless. Buy bonds, they are your only ticket to surviving the coming economic recession. A recession occurred in Trump 1.0 and it will be a miracle if Trump 2.0 avoids a recession because the economic skies are darkening like recession is right around the corner. Trump’s trade war has become a zero-sum game where for every manufacturer bringing a factory back to avoid the punitive import tariffs, there is another factory owner shutting down operations and idling workers because they cannot export their goods to the rest of the world as their former markets are slammed shut.