Trump’s Tough Talk on Trade Rattles Investors
White House decision to impose tariffs on steel and aluminum imports raises concern that a broader protectionist trade policy may be in the offing
.. Low interest rates have long been a justification for stocks’ lofty valuations, and investors say higher rates will make equities less attractive as borrowing costs and Treasury yields rise.
.. Despite the retreat, the Dow is still up 34% since its election day close in 2016.
.. He thinks the prospects of a trade war are very small and that when the market realizes that, stocks will bounce back again.
.. European officials raised the prospect that they would challenge the tariffs at the World Trade Organization and could impose their own tariffs. Canadian officials also said they would “take responsive measures” against the U.S.
.. “I believe these tariffs on their own will push inflation higher, and higher inflation is a threat to the valuations of more or less all financial assets today,”