Trade war won't be full blown; stay overweight on US, says DBS

SINGAPORE (July 2): Worries over trade tensions between the US versus China and Europe may have rattled markets in recent months, but DBS believes that a protracted, full-blown war is not likely to happen.

“End of the day, this will be resolved, it will not be full blown. Everyone recognises the costs,” says the bank’s chief investment officer Hou Wey Fook (photo).

Drawing reference to the biggest fallout from trade protectionism in history, the 1929 Great Depression, Hou says cooler heads will prevail this time round, and that no political leader would be so naive as to go down the same road.

---

Related Stories

• DBS and OCBC lower respective target prices for CLCT but still deem a 'buy'
• Sasseur REIT’s Cecilia Tan: Consumption downgrade benefits us
• DBS CIO sees Fed rates peaking in 1Q2024; prefers bonds, US equities and gold

---