Market strategists see more pain ahead as a result of tariff-induced volatility. „We think it’s too early to go bargain shopping,“ an investment chief wrote.
Market strategists say the stock sell-off may have to deepen considerably for President Donald Trump to take notice and potentially adjust his approach to tariffs.
The president plowed ahead with tariffs on Canada, Mexico, and China this week, sending markets plunging as investors predicted economic growth could suffer from protectionist policy.
But Trump isn’t likely to back down for the sake of investors unless stocks risk entering a bear market, according to BCA Research.
That means stocks could fall another 15% before Trump changes course, the research firm said, which would bring the S&P 500 around 20% lower from its peak in mid-February and into technical bear market territory.
Trump’s tolerance for market volatility sends a message to trade partners that he’s serious about tariffs, Matt Gertken, a chief geopolitical strategist at BCA Research, said.
