Stock market hasn't priced in possibility of tariff rollbacks, says Strategas' Jason Trennert

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'And that's part of the reason why I think there could be a change in leadership,' Strategas Research Partners Chairman Jason Trennert tells CNBC.

The stock market has been anticipating a partial trade agreement between the U.S. and China but not the possibility of tariff removal, Strategas Research Partners Chairman Jason Trennert told CNBC on Thursday.

Trennert said he believed cyclical stocks in particular could be the sector to drive the market higher, saying they could end up "picking up the slack and continuing to do a little better since they have in September." "We're really betting on a bottom in global economic growth," Trennert said, arguing that an agreement between the U.S. and China would likely lift companies with overseas exposure.Trennert's comments were in response to news that the Trump administration has agreed in principle to a partial trade deal with China, pending President Donald Trump's approval, CNBC reported earlier Thursday.

 

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