US investors underestimate the impact of the trade war on profits - analysts.

Investors believe in market resilience

Chief equity strategist at CLSA Alexander Redman is convinced that investors in the US stock market are showing remarkable confidence regarding the trade war and its potential impact on corporate profits. Even with serious reasons for concern about stock prices, economic indicators point to an optimistic future.

'The real damage to corporate and consumer sentiment was done during the imposition of tariffs,' said Redman.

Although trade conflicts introduce some instability, the S&P 500 index is only down 5% compared to previous records. Earnings per share are expected to grow by 10% this year and by 14% next year. However, Redman warns that expectations may be overly optimistic.

The brokerage firm advises reducing investments in Asian economies, as they are export-dependent on the US. They recommend focusing on less risky markets like India and Australia, but risking exposure to Japan and China.

Overall, despite the resilience of the market, investors should carefully consider their actions due to the global instability of trade relations and potential changes in corporate profits in the future.