Investors Strategists: Market Sell-Off

investors strategists: Before last week we were pro-risk overweight stocks, emerging markets and small caps within our stock portfolios, Ed Campbell, portfolio manager at QMA told Market Watch, according to Market Watch. Now, we've been in the process of scaling back on those bets and going to neutral or cutting those positions in half. Investors and strategists tell Market Watch that heightened uncertainty over U.S.-China trade relations will continue to be a significant headwind for equity benchmarks, but that the extent of the damage could be limited by both the Trump administration and the Federal Reserve's sensitivity to a market sell-off. The strategy shift for wealth managers and investors follows a May 5 tweet from President Trump, who first raised the prospect allowing annual tariffs on more than 200 billion of China goods to be lifted to 25% from 10%, charging that Chinese officials reneged on commitments they had made during negotiations. Indeed, the S&P 500 SPX, 0.89% lost more than 4.5% of its value since that period. The tweet sparked a cavalcade of selling of assets perceived as risky, like stocks and crude-oil futures, sending markets mostly reeling over the following six-session span. (news.financializer.com). As reported in the news.