Investors Fret About a Trade War, but They Aren’t Fleeing the Stock Market
Investors Fret About a Trade War, but They Aren’t Fleeing the Stock Market At a conference held by a top investment bank in Manhattan last week, attendees were asked to submit what they thought was the biggest risk to the global economy. When their concerns showed up on the conference screen, these words were the most popular: Trump, trade war and protectionism. Outside, meanwhile, the stock market was having another up day. In recent weeks, against the expectations of many on Wall Street, investors have not run for the exits as President Trump has stepped up trade brawls with China, Canada and the European Union. On Friday, when the Trump administration and China announced tit-for-tat tariffs on $50 billion of goods from each country, the Standard & Poor’s 500 index finished barely lower. The index has gained 2 percent since the end of February, when Mr. Trump began to take action on trade in earnest, and it remains up 30 percent since his election in November 2016. Why h...