Trade War Tension: Look Past the Noise to Navigate Uncertainty

Markets sold off sharply this week after a sudden escalation in the U.S.-China trade war. George Maris, Co-Head of Equities – Americas, explains why the reaction was so severe and offers insight on how investors can navigate this period of uncertainty.

Key Takeaways

  • The sudden escalation in the U.S.-China trade war this week caught investors off guard, causing a major global sell-off in markets that had been hitting record highs.
  • While the trade dispute will likely lead to more volatility in the near term, we believe that all the incentives are in place for both parties to reach a positive outcome that will ultimately create a good backdrop for global growth.
  • In our view, the volatility we’re currently experiencing could create opportunities to find attractive valuations in both growth- and value-oriented companies – particularly for investors who can look past the noise and take a long-term perspective.