Financial markets are taking the escalating trade conflict between the U.S. and China in stride. Instead of sending stocks reeling, investors have pushed the S&P 500 Index to within 0.7 percent of the record high of 2,873 reached on January 26. Are investors too complacent?
Market participants should be prepared for the possibility that while the trade wars will have many sector specific casualties, there will be winners as well. The net impact, while negative, might be swamped in the scope of the U.S. economy.
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