Never Add Tariff’s on a Full Moon
Trade negatives along with implementing deficit funded tax cuts for the rich are two no no’s that we have talked about repeatedly. We now just need to watch closely for a bit. The stock market bulls still view this as a correction rather than a top.
We will say more later today.
And remember that the “Fracture” that we mentioned a few days ago is what we are watching for at this point to indicate that a run to the downside is in gear.
More thoughts later in the day, Posted at 12:00 noon CDT
My off-the-cuff thought is that I think there may be a case made that tariffs will help retain more manufacturing jobs in the US for products that are bought and consumed domestically. This is a little bait for the disgruntled manufacturing American worker and may help with a bit of the growing inequality battle that has confronted the country for many years.
And on the other hand I think for the country as a whole, it will lower GDP, trade, and corporate revenues. This also could help a bit with inequality as the top tier own most of the corporate stocks that are going to see lower earnings numbers.
So this will be a battle that will not end soon.