Market Update – May 24, 2019

As the trade war with China heated up this week, investors rushed to safety with the 10-Year U.S treasury hitting its lowest level since Nov 2017 with a yield of 2.3% yesterday.

Our view remains that a trade deal eventually gets done, but not as fast as most would like. The potential for a 25% Tarif on the remaining $300 billion of Chinese imports has increased and ultimately could result in about a 0.5 to 1% hit to U.S. GDP; potentially twice that to the Chinese economy.