More Carve Outs, More Flip Flops

Trump floats auto exemptions, driving another rally in stock markets

Highlight

• Trump floats auto exemptions, driving another rally in stock markets

• Fund managers are cutting back on U.S. equity exposure

• Corporate debt issuance freezes over recession fears

• Dollar continues to sell off and the yen pops on stimulus talk

Key Takeaways

• Bull Market in Mixed Messages: Well, first it was electronic products over the weekend, and then yesterday, President Trump stated he is looking into a pause on auto tariffs. There is a bull market all right, and it is in mixed messaging. And the action in the markets this past week shows that investors are nothing short of desperate for any good news, even if it means “policy on the fly” that reduces, as opposed to increases, the elevated level of trade frictions.