Highlights
• Trump backs up (again) on his tariff threats to the EU
• Consumer confidence level remains at dismal levels
• Canada’s labor market is screaming recession
• Growing inequality makes the case for a lower R-star
Key Takeaways
• Priced for Zero Rates: U.S. equity futures are down modestly, while the Euro Stoxx 50 benchmark is flat, and Asia is broadly mixed. At a 21x forward P/E multiple, S&P 500 valuations are trading as though we are back to 2020-2021 interest rate levels when the 10-year T-note yield was below 1.0% and the Fed funds rate was pinned to the zero lower bound.
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