Trump's rhetoric may lead to fairer global trade: Allianz's El-Erian - Reuters

Mohamed Aly El-Erian, the chief economic adviser at Allianz and former CEO and co-chief investment officer of PIMCO, is of the opinion that Trump's trade antics are likely to lead to fairer but still free global trade. 

Key points (Source: Reuters)

There is a 1-in-4 chance of a full-blown global trade war leading to a hard landing in China and a global recession.

There is significant scope for more volatility in emerging markets due to potential forced selling on the back of stop-losses.

Contagion risks, though limited for now, could increase "if bad technicals become bad economics and finance," with the least liquid markets being in the greatest danger

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.