Barron’s: “Why Trade Wars Don’t Matter for the Dow…Until They Do”

Barron’s latest article quoting DataTrek’s Nick Colas:

….”Of course, the meeting ended badly enough that a trade war between the U.S. and its allies is a real possibility. The market, however, refuses to price one in. There’s a good reason for that. DataTrek’s Nicholas Colas notes that while the headlines were “dramatic,” the markets “already know this drill.” Colas argues that just as investors price in a “Fed put”–a central bank backstop if the markets start to tumble–they’re also pricing in a trade-policy put. If U.S. equity markets start to suffer from too much White House bluster on the matter, so the thinking here goes, the president will have no choice but to back off,” Colas says. “True or not, the idea explains the muted market response to date”….

Read the full article here on Barron’s!