Market & Investment Risk Insights webinar (MAC)

In this insightful webinar, Christoph Schon explores how the latest trade policy announcements have triggered the biggest joint selloff of US share prices and the dollar since 2002. He reveals how the US dollar has decoupled from monetary-policy expectations, with markets potentially reacting negatively to unanticipated Federal Reserve cuts.

Christoph presents the tariff impacts on various asset classes, sectors, currencies, and countries, and uses Axioma stress test scenarios to show how much of it could have been anticipated.

Watch the webinar to learn how the shift from inflation and monetary policy concerns to trade wars and recession fears has affected the risk profiles of global multi-asset class portfolios.

Key findings:

• Each introduction of new tariffs triggers a severe stock market selloff, with the US suffering the biggest losses, as cyclical sectors underperform their defensive peers and safe-haven currencies record the biggest inflows.
• At the same time, the opposing forces of persistent inflationary pressures and potential economic damage from trade barriers keep Treasury yields in a tight range, while the Fed is hampered by the same conundrum.
• The resulting low correlation between stocks and bonds provides some diversification opportunities for multi-asset investors, but to a much lesser extent than in previous flight-to-quality environments.

Speaker
Christoph Schon, Head of Investment Decision Research, EMEA, SimCorp