Why Stock Market Has Not Come Undone In Trade War

Fearful headlines about the U.S. – China trade war are dominating the news cycle.

The trade war “will subtract 1.8 percentage points from G.D.P. growth,” cause unemployment to rise, and “cost the average American family between about $500 and $800,” and “further escalation of trade tensions would have dire consequences” 

So why hasn’t the U.S. stock market plunged?

The answer is that China has a lot more to lose from the trade war than the United States.

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