Risk-Off Trade Steps On the "Brakes" as President Trump Utters the Word "Breaks"

Equity markets jump amid new hints of weaker tariffs…

Highlights

• Equity markets jump amid new hints of weaker tariffs…

• … but policy uncertainty continues to restrain deal flow

• Most commodity prices have rolled over

• Our Rosie Fund has beaten the S&P 500 YTD

Key Takeaways

• Investors Return to Risk-On Trade Amid Narrow-Tariff Rumors: Talk about a reversal of fortunes yesterday. An “everything rally!” with an exclamation mark. Once again, headline-driven investors were greeted with a new one in the form of another Donald Trump watered down tariff threat. On again, off again, on again and off again (now he is talking about “breaks” — the latest out of the White House is that only the 15% of countries with the largest bilateral surpluses will face the sharpest tariff hikes… Canada and Mexico are part of that squad).