Is US-China Trade War Preparing Any Major Shock?
The word ‘trade war’ creates a panic situation in everyone’s mind. Market might not have seen the impact of recent trade war till now. However, history says that the impact could be devastating.
During 1929 market crash, the Dow Jones Industrial Average Index dropped nearly 79%. The rising trade conflict, higher credit level, falling steel & aluminum production, slower auto sales, and slower construction spending triggered that fall. However, in the present situation, the market just saw a 9% correction after announcement of various trade tariffs by both the US and China.