Free trade and globalization have contributed to lower inflation and steady economic growth over the past 40 years. The US plans to return to a level of protectionism not seen since the Tariff Act of 1930. If tariffs on China reach the proposed levels next year, it could result in either unexpected inflation or reduced corporate earnings. As of yet, stocks have been supported by ultra-low interest rates. Long-term Treasury bonds have outperformed the S&P 500 over the last year. I recommend reducing exposure to equity until trade tensions subside.
New tariffs of 15%