Are Investors Smelling a Rat on the Tariff File?

Investors look to be calling Trump's bluff on tariffs

Highlights

• Investors look to be calling Trump's bluff on tariffs

• Rising “shadow” housing inventory is emerging as a source of disinflation

• "American Exceptionalism" is being funded by a record fiscal deficit

• P/E multiples do not comport with where interest rates are

Key Takeaways

“The Everything Rally” Pushes Markets to Key Levels

• Let’s just call yesterday for what it was — “the everything rally.” The S&P 500 jumped +1.0%, to 6,115 and is reaching a ceiling it has seen no fewer than five other times in just the past three weeks. Every attempt has failed, but at some point, it is going to have to break in either direction because it is doubtful that the index will range-trade indefinitely.