Trade War To Dent Global Growth But Opportunities Abound

China and the U.S. are playing a dangerous game of brinkmanship which will dent global growth, but there will be important opportunities for long-term investors, affirms the CEO of one of the world’s largest independent financial advisory organizations.

dent global growth Top 10 Countries With Fastest Ultra Wealthy Population Growth

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Nigel Green, the chief executive of deVere Group, which has $12bn under advisement, is speaking out after Beijing announced on Friday it will impose new tariffs on $75 billion worth of U.S. goods and resume duties on American autos.

The Chinese State Council said it will slap tariffs ranging from 5 to 10 per cent in two batches. The first on 1 September and the second on 15 December.

Mr Green notes: “China and the U.S. are playing a dangerous game of brinkmanship which will inevitably dent global growth at a time when the global economy is headed for a serious downturn.

“Both sides are getting hurt by the ongoing tit-for-tat trade war and given that they’re the world’s two largest economies its negative impact is far-reaching and intensifying. There’s some serious collateral damage.

“It is likely that there will be further retaliations in the form of tariffs, punitive sanctions on each other’s nation’s firms and, possibly, currency devaluations.”

He continues: “The already volatile markets have been rattled again by today’s news. Investors are getting spooked.

“However, the trade war will likely prove a blip for long-term investors.

“Indeed, investors should embrace some volatility as important buying opportunities amid the dent global growth issue.

“Fluctuations can cause panic-selling and mis-pricing. Sought-after stocks can then become cheaper, meaning investors can top up their portfolios and/or take advantage of lower entry points. This all typically results in better returns.

“A good fund manager will help investors seek out the opportunities that turbulence creates and mitigate potential risks as and when they are presented.

The deVere CEO concludes that despite the dent global growth issue “many savvy investors will be using the fall-out of the U.S.-China trade war to generate and build their wealth.



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Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver