Despite the recovery in broad risk over the past few months, the underlying issue remains the same. The decades-long integration of global trade — with the United States at the hub — has been permanently disrupted. And unless we see a complete reversal from the Trump administration, the current regime of higher trade barriers is likely here to stay.
What’s more, we also appear to be in the early stages of something more nefarious — a capital war. As congressional members pass the “One, Big, Beautifull Bill Act”, a provision like Section 899, even if excluded, should send a reminder to non-U.S. investors that foreign investment is becoming less welcome than it has been in the past.
Related Strategy & Insights
A long-short strategy is a popular alternative strategy that has been traditionally used by hedge funds that combines long and short positions within a portfolio to capitalize on rises and declines in stock prices at the same time. The goal of the strategy is to generate better risk adjusted returns by benefitting from both directions of price movements in the market.