CNBC interviews Partners Group advisory partner, Charles Dallara, on the current US-China trade war. While USA won a small victory with China agreeing to buy 50 Billion of agricultural products, USA is likely to lose the war in the long run.
A series of unpredictabilities is making traders wary about the future outlook of the economy. Dallara puts the chances of a 2020 recession at 50:50 if the trade war between China and US does not conclude.
China economy is slowing down with export and import declining due to the trade war. So is the US economy with consumers buying less due to price increase with imports from China having to bear a tariff cost.
Eventually we will hit a tipping point where consumer confident will be eroded, this is when a recession will happen, which is probable sometime in 2020.
Full interview can be found in the video below