The risks of an expanding trade war is overwhelming the economic fundamentals

Investors are paying attention to the economic data but are focused on the looming trade war. Stock prices have been declining and bond prices have been rising as capital flows from stocks into bonds. The imposition of tariffs will result in slower economic growth than would otherwise be the case as prices for goods rise to cover the cost of tariffs. Higher prices will slow consumption spending. They will also cause inflation to rise…

 

ProBank Austin Advisor-June 25, 2018