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How to Rebalance Your Portfolio in the Wake of a Global Trade War

A trade war is the biggest threat to the stock market, this expert says. Do you know how to play your cards right?

Alarm bells have started to ring, but how loud should they get?

According to Jeff Kleintop, chief global investment strategist for Charles Schwab Corp. (SCHW) , a global trade war is the largest threat to the stock market, as firms more than ever rely on foreign revenue to boost their profits. 

But Kleintop said a resolution to current trade disputes is likely, meaning this bull market could keep raging through 2018.

Nonetheless, Kleintop offered a simple strategy for investors to manage the risk of a trade war: don't just stick with the norm. Consider rebalancing portfolios to account for changes in large cap versus small cap, growth versus value and U.S. versus international stocks.