A number of U.S.-listed funds tracking international markets slid Wednesday, as investors deliberated the impact of the president-elect's proposed tariffs on global trade. Trump has previously proposed tariffs of up to 20% on imports, with a stringent tax of 60% on goods coming from China. Japanese stocks rallied, however, as the yen weakened with some investors expecting the U.S. defense partner stands to gain most from Trump's policies. On Wednesday, the Nikkei 225 popped 2.
"We believe markets will lean toward a rally as the year-end approaches," Bank of America's Masashi Akutsu wrote Wednesday. However, Akutsu warned, with few positive earnings surprises in the market, a year-end rally could be "limited in scope." Bank of America recommended stocks with high beta, high return on equity and low leverage.