As MarketWatch’s sister publication Barron’s writes,
the Sino-American issues are many and include actions taken by the U.S.
to censure China’s new security rules that threaten Hong Kong’s
semiautonomous status, restrictions against Huawei Technologies, a push to increase scrutiny of Chinese companies listed in the U.S., funding for the World Health Organization, and accountability for the handling of the viral outbreak that has likely ushered in one of the most severe global recessions in the past 100 years.
“The list is long as my arm,” said Ian Bremmer, Eurasia Group’s founder and president, of the Sino-American tensions, during a Friday interview on CNBC.
“It’s never a good thing that the two largest economies in the world are battling,” Peter Boockvar, chief investment officer of Bleakley Advisory Group, told MarketWatch in an emailed exchange on Friday.
Tensions between the countries, however, don’t seem to have supplanted the intense investor focus on reopening the economy in the U.S., and elsewhere in the world, or attention on a cure for the COVID-19 pandemic, which have helped to buoy risk assets.
“I think the market likely sees the upside risk related to finding a vaccine or treatment as near-term, and the downside risk related to China as long-term, so they are focusing more on the near-term right now,” Lindsey Bell, chief investment strategist with Ally Invest, told MarketWatch on Friday.
“After a 30% plus rally from the March lows, the bar is definitely much higher. As the worries with China heat up, we do think investors could be a little too complacent here and now,” said Ryan Detrick, senior market strategist at LPL Financial.
“The economic recovery is still very fragile and any larger repercussions between the U.S. and China could put a halt to the equity rally quite quickly,” he told MarketWatch.
Read more at: Are stock investors too complacent about a full-scale blowup between China and the U.S.? Here’s what Wall Street experts say - MarketWatch
semiautonomous status, restrictions against Huawei Technologies, a push to increase scrutiny of Chinese companies listed in the U.S., funding for the World Health Organization, and accountability for the handling of the viral outbreak that has likely ushered in one of the most severe global recessions in the past 100 years.
“The list is long as my arm,” said Ian Bremmer, Eurasia Group’s founder and president, of the Sino-American tensions, during a Friday interview on CNBC.
“It’s never a good thing that the two largest economies in the world are battling,” Peter Boockvar, chief investment officer of Bleakley Advisory Group, told MarketWatch in an emailed exchange on Friday.
Tensions between the countries, however, don’t seem to have supplanted the intense investor focus on reopening the economy in the U.S., and elsewhere in the world, or attention on a cure for the COVID-19 pandemic, which have helped to buoy risk assets.
“I think the market likely sees the upside risk related to finding a vaccine or treatment as near-term, and the downside risk related to China as long-term, so they are focusing more on the near-term right now,” Lindsey Bell, chief investment strategist with Ally Invest, told MarketWatch on Friday.
“After a 30% plus rally from the March lows, the bar is definitely much higher. As the worries with China heat up, we do think investors could be a little too complacent here and now,” said Ryan Detrick, senior market strategist at LPL Financial.
“The economic recovery is still very fragile and any larger repercussions between the U.S. and China could put a halt to the equity rally quite quickly,” he told MarketWatch.
Read more at: Are stock investors too complacent about a full-scale blowup between China and the U.S.? Here’s what Wall Street experts say - MarketWatch
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