What Tariffs and the NBA Finals Mean for Gold’s Rally

Photo by: Shaheen Karolia - Flickr | Attribution-NoDerivs 2.0 Generic (CC BY-ND 2.0)

As we close out another week, I’m currently in Toronto, the mining finance capital of the world. But at the moment, all eyes are on the Toronto Raptors, now the most valuable sports franchise in Canada as they make their way through the NBA Finals.

The whole country of Canada has rallied around this international team, which has players from all over and whose main superstar, Kawhi Leonard, previously played for San Antonio, home of U.S. Global Investors. The enthusiasm and energy surrounding the Raptors is infectious, and I truly believe that this type of positivity can lead to success in all areas of life—even when it comes to investing and economics.

Letting negative energy get in the way is disruptive, as we saw this week when Warriors part-owner Mark Stevens shoved Raptors player Kyle Lowry from courtside. Even LeBron James called out Stevens’ unsportsmanlike behavior, writing in an Instagram post, “There’s absolutely no place in our BEAUTIFUL game for that AT ALL.”

Economic wealth is made and lost by the attitudes we choose to present to the world. Because of his negativity, Stevens, a billionaire venture capitalist, will be fined $500,000 and be banned from the NBA for a year. There may also be further, unforeseen ramifications.

This brings me to the topic of the U.S.-China trade war, which some may argue is about as negative as you can get. Did you know the biggest losers in the stand-off will be the two superpowers themselves, responsible for 40 percent of trade around the world? The U.S. is projected to lose as much as $94 billion in exports, China $205 billion, according to the United Nations Conference on Trade and Development (UNCTD).

Another loser is the average American, whose tax reform savings has already been wiped out by the trade war, according to Bloomberg.