An economist is warning that three bad developments could hit at once, which would be bad for stock investors in both the US and Taiwan.

• A US-Iran military conflict looks set to escalate.
• US-China relations are souring, with Washington possibly hitting China with secondary sanctions ahead of Xi Jinping's planned US visit.
• The Fed may have to raise rates in the second half of the year, since inflation has run above 3% for months.
• Money would likely rush into US government bonds and the dollar, pushing bond yields back down but knocking stocks around.
• If US stocks fall and investors turn cautious, Asian markets including Taiwan would get dragged down too.

Outlook: Expect choppy, weaker stock markets in the near term while safe-haven assets like US bonds and the dollar gain.