Investment strategist warns trade war could turn 'recession fears' into 'depression fears'

(Image credit: Johannes Eisele / Getty Images)

published 6 August 2019

Anxiety over the U.S.-China trade war is continuing to heighten after the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all had their worst day of 2019.

This market turmoil occurred on Monday after China devalued its currency and after President Trump announced new tariffs on Chinese imports. The Dow was down 767 points by the end of the day.

Investors, Axios reports, are starting to fear that the trade war "could do massive damage to the entire global economy." The report goes on to cite Jim Paulsen, The Leuthold Group chief investment strategist, who in a memo to clients on Monday wrote, "If the stimulus introduced about the globe in the last six to nine months does not trigger at least some bounce in the economic and earnings recovery, it won't be recession fears that will spike, it will be depression fears."

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Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.

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