Alarm bells have started to ring, but how loud should they get?
According to Jeff Kleintop, chief global investment strategist for Charles Schwab Corp. (SCHW) , a global trade war is the largest threat to the stock market, as firms more than ever rely on foreign revenue to boost their profits.
But Kleintop said a resolution to current trade disputes is likely, meaning this bull market could keep raging through 2018.
Nonetheless, Kleintop offered a simple strategy for investors to manage the risk of a trade war: don't just stick with the norm. Consider rebalancing portfolios to account for changes in large cap versus small cap, growth versus value and U.S. versus international stocks.
