Investment Strategist: Security Worries and Trade Wars

investment strategist: While we can all breathe a sigh of relief that we're not going to see trade wars on multiple fronts, the battle has merely been postponed, said Craig Erlam, senior market analyst at OANDA. Onto our call of the day, from Michael Arone, the chief investment strategist for State Street Global Advisors, according to Market Watch. He tells investors to keep a close eye on the dollar, as strength in that currency could prove a setback for one asset class that's been popular in 2019. Investors have brushed off news that the Trump administration looks set to ban telecom equipment by Huawei Technologies, the Chinese tech company that's been at the heart of U.S. security worries see buzz . The shift to optimism seems to have started with Wednesday's news the White House will delay auto tariffs for Europe and Japan. This year...we've seen 14 billion come into emerging-market ETFs, largely being driven on this idea that with the Fed on hold, the pace of interest rate acceleration will slow and the dollar is likely to decline, said Arone, in an interview with Market Watch. Trade tensions have been stressing emerging-market equities and currencies, as of late, with some concerned collateral damage from a trade war that could hit China's economy. A weaker dollar can help steer investors toward higher yielding, though potentially riskier, emerging markets, while the reverse can be in the case of a stronger dollar, which also makes it tough for those countries to service dollar-denominated debt. (news.financializer.com). As reported in the news.