Trade deals don't resolve deeper market problems, strategist says

About this Video

• Video Title: Trade deals don't resolve deeper market problems, strategist says
• Channel: Yahoo Finance
• Speakers: Arnem Holtzer Easterly, Josh (host), Julie (host)
• Duration: 00:05:51

Introduction

This Yahoo Finance video features an interview with Arnem Holtzer Easterly, a global macro strategist at EAB, discussing the market's reaction to recent trade deals, particularly between the US and the UK, and the US and China. Easterly argues that while these deals remove some uncertainty, they don't address underlying economic concerns, potentially leading to continued market volatility.

Key Takeaways

• Trade deals offer short-term relief but not long-term solutions: While trade deals alleviate immediate concerns, they don't address deeper market issues like the reconciliation of top-down and bottom-up earnings estimates or the uncertainty surrounding manufacturing reshoring.
• Corporate planning remains hampered by uncertainty: Companies still face uncertainty regarding future trade policies, hindering long-term investment plans and capital expenditure.
• The Fed's response is crucial: The Federal Reserve's interpretation of trade deals' impact on inflation and growth is critical. The strategist suggests the Fed might be too complacent about the potential for a slowdown.
• Market volatility is likely to persist: Uncertainty surrounding trade, tax policies, and the Fed's response creates a high probability of continued market volatility.
• Investors should consider volatility-based investments: Given the ongoing uncertainty, investors should consider incorporating volatility-hedging strategies into their portfolios.