Wall Street Forced to Recalibrate as Trade War Gets ‘More Real’
- Fixed income markets draw interest; inflation a threat though
- Equities stand to suffer more if tensions escalate further
This article is for subscribers only.
For months, investors have dismissed Donald Trump’s fiery rhetoric on trade with China as negotiating bluster. That got a lot harder after the U.S. president threatened more tariffs and China promised in-kind retaliation.
Investors reacted with a decisive move to pare risk, as equities sank around the globe and bonds rallied. But how about beyond Tuesday? If the world’s top two economies are headed for a trade war, how should investors position themselves? The following are some thoughts from fund managers and strategists.