Morgan Stanley Warns on U.S. Trade Risk and Suggests Hedges

Trade risk in U.S. markets is no longer hypothetical, and investors would do well to pay attention, according to Morgan Stanley strategists.

The Trump administration took less action on trade policy in its first year than its campaign rhetoric may have caused people to believe. But there are a number of approaching deadlines on trade decisions, in addition to simmering conflict with China and ongoing Nafta negotiations, that may start to affect markets more significantly. The latest sign of protectionism came Monday, when the U.S. slapped tariffs on imported solar panels.