Well, futures have opened and the sellers are back on the continued news of sweeping tariffs across Mexico, Canada, China, and the EU is surely coming. Trump just loves to be a bull in a china shop. Let’s hope the smart folks around him remind him sentiment is a fickle thing and so are his approval ratings. His ego needs to be stroked and he uses the stock market as his score card for success. So far, he’s starting off with a D-.
The three largest trading partners of the U.S. are: Canada, Mexico, and China. The proposed tariffs will affect trade worth about $1.3 trillion, or 43% of US imports. Again, the result of all this lunacy is likely A)high market volatility, B) slowing economic growth, C) higher persistent inflation, D) wild volatility in currency markets, E) added retaliation against the US from these countries, which simply creates a wicked negative feedback loop. Get your trading cap on and keep it close for the next 4 years, thats where the most money will be made. This is what markets will look like 4 years looking backward.