Delve: How Will Tariff Uncertainty Affect Financial Markets?

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Published: 28Aug2020

Against the backdrop of tariff wars and a pandemic, one question that investors are asking is whether they can trust financial analysts’ earnings projections for their investment decisions. On the one hand, financial analysts are professional earnings forecasters whose livelihood depends on the accuracy of their work. On the other hand, trade uncertainty might be severe enough to undermine the credibility and accuracy of analysts’ forecasts. McGill University’s Dongyoung Lee looks into the historical data to determine whether and how trade uncertainty has an impact on financial analysts’ forecasting behaviour.

This article is brought to you by Delve, the official thought leadership publication of McGill University's Desautels Faculty of Management.


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