www.varchev.com

BlackRock: "Trump tariff would be a 'game changer' and hit markets"

Black Rock building

Rating:

12345
Loading...

The bull market has entered a critical crossroad due to uncertainty involving the Trump tariff, and the situation is raising red flags on Wall Street.

The BlackRock Investment Institute's Terry Simpson says if the tariff becomes a reality, the firm could back away from its positive outlook on stocks.

"This is a game changer if it actually does materialize," the firm's multi-asset investment strategist said Tuesday on CNBC's "Futures Now." "Let's make no mistake about it, tariffs are bad economic policy."

Yet that doesn't seem to be deterring President Donald Trump, who reaffirmed his plan to put tariffs on steel and aluminum imports on Tuesday. He declared, "Trade wars aren't so bad."

But to Simpson, it's the danger topping the firm's watch list — eclipsing rising interest rates and inflation.

The overwhelming fear is that a trade war would create an unfavorable global growth environment. It has been one of the pillars of bull markets around the world.

"If we have a push to tariffs, that hurts global trade and that's going to hurt developed markets. That's going to hurt emerging markets. That really adjusts the global growth story," said Simpson.

This scenario would be a major issue for his firm, which is overweight emerging markets.

"If you have a reduction in global trade where emerging markets are very dependent on, that probably would hurt emerging markets' risk assets particularly on the equity side," he added. "Specifically, maybe EM [emerging market] Asia since they are so heavily tied to the global supply chains."

Simpson isn't ready to back away from his bullish take on stocks because the fundamental story is solid. For now, he's taking a wait-and-see approach.

"We don't want to adjust our portfolio, how it stands off the expectations, off what might happen," Simpson said. "Hopefully, cool heads will prevail as we think about the tariff policy."

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov


 Varchev Traders

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance

London


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy