Trade Tensions Casting ‘Dark Cloud’ on the Markets

Edward Campbell, QMA managing director, and Simeon Hyman, ProShares Advisors, appeared on CNBC’s “Squawk Box” Monday morning to share their outlook on the markets in light of the ongoing trade tensions, with both analysts agreeing that the markets have remained on the upside.

“We’re going to have another blowout earnings season,” and GDP is going to be a “very strong number… but we’ve got this continuing dark cloud over our head in terms of the escalating trade tensions,” Campbell said.

Yet, the looming trade fears haven’t affected reported earnings so far, with small-cap domestic companies performing well over recent months.

“The headwind there is Fed funds, small caps are highly-leveraged, so there is sensitivity to the short end of the yield curve,” Hyman added.

Watch the full clip below:

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