Tariff File Kicks into a New Gear

Tariffs gain speed and extend all the way to Gold

Highlights

• Tariffs gain speed and extend all the way to Gold

• When we exclude mega-cap Tech, profits are stagnating

• Japanese yen is undervalued with significant upside potential against the euro

• Evidence of U.S. consumer frugality keeps mounting

Key Takeaways

• Beyond the Tech Giants, Corporate Profits Look Mainly Flat: It should be duly noted that when you strip out the mega-cap tech stocks, earnings growth in the U.S. is really running very low at just +2.5% on a YoY basis and the intense concentration in the broad market has yet to be resolved with the top 10 stocks accounting for nearly 40% of the total market (and contribution to EPS growth now near the widest levels in a half century).