The head of research at Fundstrat says that the de-escalation of the trade war between the US and China could be the catalyst for a massive reversal on the stock market.
In a new one interview With CNBC television, Tom Lee says that tariff negotiations between the cooling of the countries would reduce the chance that the economy will go through a recession.
“We know that markets have become very pessimistic, they have priced a 60% chance of a recession, and if tariff negotiations de-escalating, then the chance is not that high, so I think there is still a large window for markets to have a large rebound, but it is really the path of this de-escalation.”
According to Lee, investors must pay attention to how the rate war between the US and China is set. He says that if the rates remain in place, this can be bad news for the global economy. However, if one of the countries capitulates or the situation de-escalates one scenario that he probably eight-can-can lead to a change for the stock market.
“The US and China currently have absurd levels of mutual rates. And if you believe they are present, then the global economy is in trouble and you have to be bearish.
But if this is a matter of whom the overture first makes or flashes, but we know that it escalates, then I think the disadvantage is dramatically loosening, and I think shares can really do well in the rest of the year. “
https://www.youtube.com/watch?v=UQBIA4W7OU
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