With US traders still blissfully ignoring the consequences of escalating trade war between the US and China, which has yet to make any material dent on either the US economy or S&P500 corporate profits, prominent sellside banks have increasingly taken to issuing louder warnings about how they see said conflict progressing. Late last week, JPMorgan became the latest to drastically revise it outlook, and in a note from strategist John Normand writes that the bank has “adopted a new baseline that assumes a US-China endgame involving 25% US tariffs on all Chinese goods in 2019.”
