Economics
The Perils of Betting on a Quick End to U.S.-China Trade War
- It may be flawed logic that ‘it has to’ get done: JPMorgan
- Investors pushed the same logic with Brexit. It didn’t hold.
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If you’re an investor who believes, as many obviously do, that the U.S.-China spat will be resolved mostly because any alternative would be catastrophic, the recent history of international trade rifts is probably not something you want to think too hard about.
While parallels between the Trump-Xi showdown and Britain’s secession drama are imperfect and the forces not quite a match, equity bulls pinning their hopes on common sense and mutual self interest should take heed. Just because something should be resolved, doesn’t mean it will.