STREAMING NOW: Watch Now

What's rattling investors?

There's a reason investors aren't reacting more strongly to the trade war.Months ago, the market would swing w...

Posted: Jul 18, 2018 10:38 PM
Updated: Jul 18, 2018 10:38 PM

There's a reason investors aren't reacting more strongly to the trade war.

Months ago, the market would swing wildly as trade tensions heightened. Now, new tariffs barely register in the Dow.

That's because investors likely don't see escalations with China and US allies like Canada, the European Union and Mexico as a long-term threat, said Leo Grohowski, chief investment officer of BNY Mellon Wealth Management.

"The daily headlines - trade, tariffs, geopolitical issues - they're not unimportant, certainly not unimportant to daily performance," Grohowski told CNN anchor Zain Asher on "Markets Now" on Wednesday.

"If we're really thinking about the next year or two or three, it's about earnings and interest rates."

For now, he said, the trade war isn't expected to severely impact earnings or economic growth. As long as those remain unchanged, the markets won't react.

But "when investors sense that risks are greater to things like earnings and GDP down the road, those are the days the market really struggles," he said.

Related: Watch 'Markets Now' here every Wednesday at 12:45 p.m. ET

Some experts, like Allianz Chief Economic Adviser Mohamed El-Erian, think that the trade war could ultimately benefit the United States. But he thinks the Trump administration's aggressive approach is risky.

Grohowski agrees. He told Asher that there is "clearly" a risk that the tariffs could eventually hurt the economy and companies' bottom lines.

CNNMoney's "Markets Now" streams live from the New York Stock Exchange every Wednesday at 12:45 p.m. ET. Hosted by CNNMoney editor-at-large Richard Quest and others, the 15-minute program features incisive commentary from experts.

Recent guests include El-Erian, BlackRock's Rick Rieder, Stifel Chief Economist Lindsey Piegza and bitcoin bull Mike Novogratz.

You can watch "Markets Now" at CNNMoney.com/MarketsNow from your desk or on your phone or tablet. If you can't catch the show live, check out highlights online and through the Markets Now newsletter, delivered to your inbox every afternoon.

Oregon Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 19978

Reported Deaths: 338
CountyConfirmedDeaths
Multnomah460893
Washington292124
Marion275568
Umatilla214126
Clackamas146438
Malheur71512
Deschutes5558
Lane5403
Jackson4211
Lincoln4149
Yamhill40412
Union3922
Jefferson3323
Morrow3272
Polk30112
Linn26310
Klamath2001
Hood River1780
Wasco1723
Benton1626
Douglas1401
Josephine1082
Coos890
Columbia860
Clatsop830
Crook421
Baker360
Tillamook340
Lake320
Wallowa191
Curry140
Sherman140
Harney100
Gilliam40
Grant20
Unassigned00
Wheeler00
Eugene
Overcast
60° wxIcon
Hi: 75° Lo: 50°
Feels Like: 60°
Corvallis
Overcast
56° wxIcon
Hi: 75° Lo: 50°
Feels Like: 56°
Roseburg
Overcast
58° wxIcon
Hi: 76° Lo: 53°
Feels Like: 58°
North Bend
Overcast
58° wxIcon
Hi: 67° Lo: 52°
Feels Like: 58°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events