By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — An economist with Creighton University in Nebraska who does monthly surveys of the region, including Kansas, says that financial markets often run on a particular emotion.
"There are two markets to be watching right now," said Ernie Goss with Creighton. "That would be the equity market, the stock market, which is a good fear gauge. When fear is up, the stock market generally is down. Likewise, the bond market works in the opposite direction. It's a safe haven. Individuals and investors globally seek to purchase bonds as a safe haven. Likewise, gold. What happens there is the yields, that's the interest rate on bonds, goes down when we see increasing fear."
President Trump's trip to India may not yield anything immediately in regard to trade, but it's too big a market not to notice.
"There's a lot of promise in India, certainly, with its huge market for our goods, particularly agricultural goods," Goss said. "That would be, of course, grains. We're seeing a real market there. There's still a lot of impediments in India to increase trade, but I think this is a good endeavor to cut away some of those impediments."
Farmers are still holding their cards close to the vest at this point.
"Farmers are just not spending their money," Goss said. "They're not buying agricultural equipment. We're seeing that across the region. We're seeing that across the nation. With these trade deals, if we do see the positive outcome that I expect and the markets expect, we'll see farmers jump back in and purchase ag equipment."
One thing that could slow the implementation of the trade deals as negotiated is the outbreak of coronavirus, as sick people aren't out buying goods and services in the Far East.