Lots More on a Massive, Historical, Stagflationary Shock

Lots More on a Massive, Historical, Stagflationary Shock – Odd Lots

Market views

Bullish

INFLATION— The implementation of new tariffs is expected to lead to higher inflation, contrary to traditional economic theory. The depreciating dollar, despite tariffs, suggests a significant boost to US inflation.

Bearish

EQUITIES— US equities are expected to underperform due to the stagflationary impact of new tariffs, with concerns about negative consequences for US workers and investors.
USCHINA— Economic modeling suggests that the newly announced 60% US-China tariffs could potentially wipe out US-China trade, indicating a severe impact on bilateral trade relations.
EURUSD— The implementation of 20% tariffs on European exports to the United States is expected to significantly reduce trade volume, potentially weakening the Euro against the US Dollar.
AAPL— Market skepticism about announced US investments by tech companies like Apple suggests potential downside, as share prices remained largely unchanged following the announcements.

Not investment advice.