Deal or No Deal – The Trade War Continues
- Tariffs once again took center stage last week after taking a back seat since the fourth quarter of 2018. Market volatility resurfaced, on concerns of the potential negative impact on the U.S. economy.
- The fallout of the trade war does not appear to be enough, on its own, to push the U.S. economy into a recession to date. However, if the trade war escalates further, investors should be prepared for increased volatility in the global equity markets.
- Since the U.S. economy has held up despite the tariffs, investors may be tempted to underestimate recent headlines. Investors should not be complacent with their portfolios given the strong rally in the markets in 2019 and ensure they have the appropriate safety guards in place.