With tensions continuing to ebb and flow, investor patience surrounding the matter is growing thin. And, when the mood sours, the stocks most associated with the scuffle tend to get dumped the fastest.
"Our style work suggests that growth companies outperform during periods of slowing growth, and suggests that investors may want to seek shelter in less macro, more idiosyncratic growth stocks until we see signs of at least a temporary ceasefire," a group of the firm's strategists said."With trade drama heating up, macro is now impacting micro: earnings revisions and guidance reflect weakening corporate confidence.
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