After years of wrangling, the US and China finally signed the long-awaited phase one trade deal on Wednesday, but that doesn’t mean that investors should rest easy. At least, that’s the opinion of Joseph Little, global chief strategist for HSBC Global Asset Management.
Speaking to MarketWatch, Little stated that ‘There are still concerns about the macro outlook, about the structure internationally, with the US still challenging the nominations for the World Trade Organization’. The HSBC global chief strategist manages over $500 billion in assets, and is not sure that the new deal will calm a volatile market: ‘The [trade] environment remains very much in flux and a source of concern and challenge for investors’.
What does this mean for investors?
The details of the phase one deal are unreleased as of the time of writing, but the trade negotiations between the two economic powerhouses are just one of the major issues rocking the market. Political and environmental issues around the world are also causing instability and could likely limit returns on assets. ‘I think it’s hard to get very confident that we’re going to see a significant, strong synchronized global phase of expansion, and equally in investment markets’, said Little. ‘It’s hard to get very positive that we’re going to see a very strong phase of market returns’.
However, Little is no bear and he does see some silver lining in this turbulent environment. For one, he believes that US stocks could return 6% or 7% in 2020. He is also optimistic about improved access to trade data and sees opportunities in China, Korea, Taiwan, and Japan. When it comes to commodities, HSBC called gold ‘unreliable’ as a hedge but is bullish on oil and energy.
The best way to navigate a shifting market
The US and China trade war may be cooling, but traders shouldn’t think we’re out of the woods. In a global market, political, environmental and economic events can always cause surprises. But traders can still profit from them.
To maintain good returns in these uncertain times, a savvy trader needs to always stay informed and be able to react fast to global events. Modern technology such as that offered by Libertex is essential.
Libertex – a modern platform for the modern market
Libertex is the most user-friendly trading platform for trading 24/7 on the financial market. Available on the web or as a smartphone app, Libertex is fast, responsive and committed to keeping you up to date. We provide live updates on market trends, issue trading signals on hot assets, and also provide training materials so our clients can benefit from our 20+ years of experience in financial markets.
To deal with a volatile market, it’s important not to put all your eggs in one basket. Libertex is ideal for building a diverse portfolio. We offer over 200 financial assets including stocks in top companies, shares, currencies, cryptocurrencies, indices, oil, and gas, metals and more. Want to be ready to trade effectively in the 2020s? Then register with Libertex and start trading now!