Investors have now seen the White House take potentially its most aggressive step in a trade agenda that is turning the world on its ear and threatens the global economy.
How does another trade threat, 4X the previous announced tariffs, affect the market and near term asset allocation? What is the impact of adding 10% in tariffs onto another 200Bn in Chinese imports?
And from there how does the rest of the world respond? The impact could eventually lead to over 75bps of inflation on the CPI level that is not priced into US equites.
Listen to today’s audio blog to hear our analysis and why bond yields may be the final arbiter of where this circus is going.