The market has been patient, it assumed no tariffs until Liberation Day, now it’s assuming trade deals will happen.
To be fair that is probably a safe assumption, consumers are already getting upset over Temu import fees and we haven’t even seen the empty shelves yet which may force Trump’s hand.
I’m bearish anyway, especially long. Tariffs are going to go up to some extent and the global economy will realign against us to some extent. Manufacturing will not return in any appreciable numbers (although I’m sure there will be cherry picked news stories). The immigration crackdown is going to cause labor costs to go up.
I’m going to stick to my conservative strategy this year, the recent bump only makes me want to sell more.