New life could be breathed into Ford Motor's (NYSE:F) shares after the United States and China struck a conciliatory tone at the most recent G20 meeting in Argentina. Ford Motor's shares have dropped precipitously in 2018 as the trade conflict between the two largest economies in the world gradually deteriorated over the summer. Easing tensions between the two countries would be a major positive catalyst for stock prices, especially Ford Motor. Shares remain dirt-cheap, and come with a 6.4 percent yield.
Ford Motor's shares have dropped 23.8 percent this year, largely because of the trade war between the U.S. and China. From a technical perspective, Ford Motor is currently neither overbought nor oversold, based on the Relative Strength Index.
Source: StockCharts
Update About The Trade Conflict
Escalating trade tensions and retaliatory tariffs have been the single biggest negative catalyst for Ford Motor's shares in 2018. In September, the U.S. placed a 10 percent import duty on $200 billion of Chinese goods in order to get China to correct is trade practices. China reacted with tit-for-tat tariffs of its own, placing duties on $60 billion worth of U.S. imports.
Tit-for-tat tariffs have triggered a major correction in the stock market in October, aided by increasing concerns over higher short-term interest rates and surging bond yields. That said, though, in my last article on Ford Motor, titled "Ford Motor: 6.3% Yield And Dirt Cheap", I had this to say about the trade conflict between the United States and China:
Ford Motor's shares will remain volatile going forward, especially with respect to new tariff announcements on the part of either the United States or China. I continue to believe that the trade conflict between the U.S. and China will ultimately be resolved at the negotiating table.
The good news is that U.S. president Trump
