- If trade tensions escalate, it could tip the world economy, which is already softening into substantially lower growth.
- Apart from the direct effects of trade restrictions, greater uncertainty, diminished sentiment and resulting risk aversion could put quite a damper on markets and start affecting the real economy.
- As we will explain, what will happen in the Chinese economy as a result of trade tensions could very well add another significant risk to world markets.
Source: Have We Seen The Highs For The Year Already? | Seeking Alpha