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Allison Schrager's avatar

I think we do need a new ism! I suspect the Trump administration (and Biden) would say China is up to lots of no-good things that pose externalities or just risks, so it is worth intervening. Some valid points, but not sure trade war is the answer.

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Quag Myers's avatar

"But how can something be a safe asset while also adding volatility to your portfolio? It can’t."

While I agree with the substance of Ms.Schrager's message, it is not technically correct unless you believe that risk = volatility. For most investors (vs traders), volatility is noise, rather than risk. Risk is the possibility of long term unrecoverable loss. Clearly not readily calculable or tractable as volatility, but, unlike the former, actually important.

Otherwise. excellent points on tariffs

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