Market Outlook: China Set to Experience Significant Policy Changes

Forex - Lazard's head market strategist Ronald Temple predicted that China will be the country experiencing the most significant policy changes next year, potentially impacting the global economy significantly in the U.S. Temple advised investors to be prepared for tariffs that will be announced in the early days of the new Trump administration. He also indicated that it is likely Beijing will respond with retaliatory measures and significant fiscal and monetary stimulus. Nevertheless, Temple stated that a trade war with the U.S. could trigger the worst growth slowdown in decades for China, noting, "The ongoing real estate crisis has shaken consumer confidence in China and the decline in direct foreign investment, which has been negative for a while, is likely to continue."