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Financial markets in 2018 were notoriously characterised by threats of trade wars which had a significant impact on the performance of the equity markets. After making significant progress on that front, markets reacted very positively, helped by a dovish feTrump is at it again
Financial markets in 2018 were notoriously characterised by threats of trade wars which had a significant impact on the performance of the equity markets. After making significant progress on that front, markets reacted very positively, helped by a dovish fed and positive earnings reports from companies, propelling equity indices to new highs in 2019. Unfortunately though, President Trump is back at it again, with his tweets vowing to ramp up tariffs on Chinese goods sending equity markets into a downward spiral once again. These moves are expected to be further exacerbated by investors taking profits on their handsome gains, further increasing downward pressure in the short term. In terms of portfolio positioning, the question beckons whether to take chips of the table at this point in the year. A factor to consider is that over the summer period trading activity tends to be lighter, potentially deepening any price drawdowns. Markets seem uncertain whether or not to call Trump’s bluff on further escalations with China, with the US benchmark initially tumbling as much as 2.4 per cent before clawing back some of the losses to close the day 1.7 per cent down on Tuesday. Asian... Read more











