Market Must Adjust to New Normal on Trade, JPM's Maharaj Says

The video discusses the potential long-term nature of the trade war and its impact on market reactions. It highlights a shift towards a more cautious and pessimistic outlook, emphasizing the need to adapt to a new normal involving tariffs and structural issues. The discussion includes strategies for markets to handle risk and growth, suggesting that holding duration in portfolios remains sensible. The preferred investment strategy is credit, given the low recession risk in the US, positioning it as a favorable option.

What is the expected duration of the trade war according to the transcript?

• 11-15 years

• 5-10 years

• 3-4 years

• 1-2 years

What is the current consensus on the trade discussions?

• Aggressive and confrontational

• Unchanged and neutral

• Cautious and pessimistic

• Optimistic and positive

What are the two main components of the trade discussions mentioned?

• Regulations and taxes

• Tariffs and subsidies

• Tariffs and structural issues

• Subsidies and regulations

Why should markets incorporate risk premiums according to the transcript?

• To quickly react to headlines

• To adapt to persistent headwinds

• To avoid any market changes

• To increase short-term profits

What is the preferred investment option mentioned in the transcript?

• Credit

• Bonds

• Stocks

• Real estate