JPMorgan details exactly how it thinks Trump's trade war will play out — and what investors should do

In caller research, the planetary concern strategy squad astatine JPMorgan Wealth Management outlined its basal lawsuit for Trump's tariffs. Under the scenario, the steadfast says the effectual taxation complaint would beryllium betwixt 10% and 20%, up markedly from 2% astatine the commencement of the year.

This "represents a meaningful summation successful import duties but lands wrong Wall Street estimates pre-'Liberation Day,'" the steadfast wrote.

Trump has touted the protectionist pivot arsenic a forceful negotiating maneuver to elicit amended commercialized deals. While JPMorgan says this script volition effect successful an economic-growth slowdown and accrued unemployment and inflation, it does spot the US narrowly skirting a full-blown recession.

JPMorgan laid 2 main recommendations for qualifying investors looking to enactment harmless and possibly adjacent capitalize connected a much volatile environment:

The steadfast says structured notes tin simultaneously supply antiaircraft vulnerability to stocks portion delivering income done options premiums. This strategy generates income successful a volatile environment, albeit astatine the disbursal of immoderate upside.

JPMorgan says that volatility volition springiness hedge funds much opportunities to "exploit marketplace mispricings and comparative worth plays crossed plus classes." The steadfast besides seems them offering diversification and hedged downside during declines.

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