Chicago | Atlanta | Austin | Charlotte | Dallas | Denver | Greenwich | Houston | Kalamazoo | Los Angeles | Menlo Park | Minneapolis | Naples | Nashville | New York City | Phoenix | San Francisco | Santa Barbara | Sioux Falls | Tulsa | Washington D.C. | West Palm Beach
Cresset refers to Cresset Capital Management, CP Parent, LLC, and all of their respective subsidiaries and affiliates. Cresset Asset Management, LLC, also conducting advisory business under the names of Cresset Sports & Entertainment and CH Investment Partners, provides investment advisory, family office, and other services to individuals, families, and institutional clients. Cresset Partners, LLC, provides investment advisory services strictly to investment vehicles investing in private equity, real estate, and other investment opportunities. Cresset Asset Management, LLC, and Cresset Partners, LLC, are SEC registered investment advisors.
Market Implications of the Trade Dispute
Investors are fixated on every capricious twist and tweet in the deteriorating trade saga between the White House and Beijing. Markets are gyrating as the globe’s two largest economies spar over commerce, trade practices and economic hegemony. While it’s possible to tamp down the squabbles, inimical rifts remain. In a war for technological dominance over the coming decades, the US is handicapped by comparison. For example, our nation’s Judeo-Christian policy framework set guidelines on US stem cell research and cloning. China, however, is unconstrained by such measures. The US government cannot own companies directly, as China does, to help drive research outcomes in technology, health care and alternative energy. China’s alternative energy initiatives helped them dominate the solar industry: the country generates more than 130GW of electricity using solar power, nearly double the output of the US.
Given the breadth and depth of the issues between the two nations, we doubt America’s dispute with China will be resolved quickly or easily. In fact, we can envision a scenario in which certain tariffs remain in place indefinitely despite an interim agreement. A further breakdown in talks would take its toll on equity markets. Determining whether an ensuing pullback would be an opportunity or a threat would depend on liquidity trends. For now, liquidity levels are strong, as evidenced by lenders’ willingness to extend credit. We also take comfort in President Trump’s petulant nature and his desire to spur a rally going into the 2020 election season.
The post Market Implications of the Trade Dispute appeared first on Cresset.
About Cresset
Cresset is an independent, award-winning multi-family office and private investment firm with more than $60 billion in assets under management (as of 11/01/2024). Cresset serves the unique needs of entrepreneurs, CEO founders, wealth creators, executives, and partners, as well as high-net-worth and multi-generational families. Our goal is to deliver a new paradigm for wealth management, giving you time to pursue what matters to you most.