Volatile U.S trade relations with China are immediately reflected in the financial markets but what about the economic impact? Could they push the U.S. into recession? Leading global economist and strategist Nick Sargen weighs in.
SARGEN: “Number one is don’t add to risk. That’s the simple message. Number two is, is it a good time to d begin to do some reduction of risk in the portfolio? And I think the warning signs are Yes.”
SARGEN: “What I’m concerned with today is that I think there is no solution in sight. We are at a complete standoff. We are playing brinksmanship. And just today, the president makes a statement. I never thought I’d hear that U.S. businesses should stop doing business with China.”
SARGEN: “In my view, the upside for the stock market is limited because if the economy slowing, profits are slowing, they’re not going to be robust as they have been. And then the real risk to the downside. I think the Fed tries to provide support. But if the trade war keeps going the wrong direction, I see the risk is basically a replay of what happened in the fourth quarter of last year.”
Listen to the audio only version here:
- Economic Advisor,
- Fort Washington Investment Advisors
FROM THE WEALTHTRACK BOOKSELF: