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Nine rules for investors to navigate the trade war

Nine rules for investors to navigate the trade war

Let’s take these rules and assess whether financial markets have reacted correctly to the ongoing saga.

Markets are resigned to a trade war between the world’s two biggest economies, the US and China. David Rowe

Trade wars, like pandemics, have the potential to break traditional correlations in financial markets. Personal rules of thumb and algorithms developed in times of calm, rational orthodox policy may have little relevance in the world we have now entered. But do not despair: trade wars also have their logic.

Here are nine rules for understanding a trade war to help investors judge the appropriateness of the market reaction and gauge its impact.

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Huw McKay
Huw McKayStrategic thinkerHuw McKay is a visiting fellow at the Crawford School of Public Policy at The Australian National University.

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Original URL: https://www.afr.com/policy/economy/nine-rules-for-investors-to-navigate-the-trade-war-20250408-p5lq99