All eyes will be on President Trump and China’s Xi Jinping as the G20 Summit in Osaka, Japan kicks off Friday. The two are expected to hold extended trade talks on Saturday.
But investors shouldn’t get their hopes on anything happening at the gathering, says billionaire investor and Fisher Investments founder Ken Fisher.
“It’s kind of like the [high school] prom,” he said on Yahoo Finance’s YFi AM. “You've got all these people nicely dressed up. And they're all mostly saying nice things to each other. President Trump comes in, throws some cold water on a few people. And the dance goes on.”
That’s not to say there’s no hope for a trade deal.
“The reality is the negotiations that have to go on between the United States and China are fairly complex,” he said, adding that they’re likely not going to take place at the G20 meetings.
Before Trump and Xi’s meeting on Saturday, U.S. Trader Representative Robert Lighthizer is expected to meet with Chinese Vice Premier Liu He.
And President Xi is set to present Trump with a set of terms to settle trade tensions. Among them, Beijing is asking the U.S. to remove all punitive tariffs and remove its ban on the sale of U.S. technology to Chinese telecommunications giant Huawei. Both parties have reportedly agreed to a truce to resume trade talks.
“A truce is just a truce. It's not an end to the war. And in that regard, I think, probably, the market sees that with some disappointment,” Fisher said. “The reality is it's in President Trump's interest for a settlement that he can claim as bragging rights, but to do it far into the future from now. He doesn’t have to that right now.”
Fisher added: “Having said that, overall, I'm bullish. I've got a whole lot of reasons I'm bullish. I think the market's gonna do well in the next 12 months. And I do believe that in the longer term and probably next year, we get a complete resolution to this.”