Microsoft’s Bid for TikTok is About Much More Than It Seems

The original Cold War between the United States and the Soviet Union was fought through deploying military assets in strategic locations, manipulating trade, and even sponsoring coups.

Today’s New Cold War between the U.S. and China has opened a new front: Social media.

For months now, the quickly growing Chinese-owned TikTok social media app has been criticized in the U.S.

Security experts have found it sends highly personal information back to Chinese servers for no apparent reason.

The Department of Defense and all four branches of the military even banned it from the phones of military personnel.

Last week, things escalated even further when President Trump declared he would ban the app completely in the U.S.

From a security standpoint, that’s probably not a bad idea. But TikTok’s more than 50 million daily active users in America were less than thrilled.

Suddenly, into the middle of this tech Cold War came Microsoft Corp.’s (MSFT) CEO, Satya Nadella. Over the weekend, he announced his company was looking to buy TikTok’s U.S. division.

After a conversation with Nadella, President Trump said he was open to the idea and set a deadline: September 15.

Unfortunately, a deal acceptable to everyone is not going to be easy to find.

And in the meantime, the whole TikTok affair has revealed Microsoft’s biggest weakness

The Market Gets Its First “Caution Flag” in a Long Time

Since the March 23 lows, the market has been on an absolute tear, racing back towards the all-time highs from before the worldwide COVID-19 outbreak.

But this week, traders and investors started to pump the brakes a bit as the first real yellow caution flag started to wave. There’s a Reality Gap between the risk-on and the risk-off assets that is giving the market pause.

In today’s market update video, I’ll explain exactly what I mean and show you how it’s affecting all four of the major indexes.

I’ll also give you some insights on what it means for the market going forward.

Click below to watch…

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