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The Market Reaction To Trump's Trade War, Michael Mccarthy
The Market Reaction To Trump's Trade War, Michael Mccarthy
Honors Theses and Capstones
This event study looks at the market reaction to the global trade tensions that began in the first half of 2018. The events regarding new developments around the use of tariffs are organized in chronological order, and the stocks of certain impacted companies are looked at to see if they were positively or negatively affected by the news. To summarize the market reaction to tariffs, I use a zero cost portfolio consisting of long positions in those expected to be positively impacted and short positions in those expected to be negatively impacted. If this portfolio sees a larger return on …