As President Trump's recently announced trade tariffs start to roll out in the global markets, volatility seems to have decided to land on the S&P 500 and other American indexes, sending some capital and investors to seek potential safety elsewhere. For better or for worse, these investors have chosen to go with foreign emerging markets for their hedges and proxy for a safe haven during today’s volatile environment.
Despite the sentiment and choices, there are still plenty of dangers to consider in these markets moving forward. However, these dangers might perhaps be already priced into today’s prices, leaving investors with a much more favorable risk-to-reward ratio and setup. As it will become clear, these are some of the markets that could see a major rebound when and if these tariffs are negotiated and maybe even removed altogether.
