Markets are Embracing Inflation and Higher Deficits…

Here is what one has to ponder in todays market environment:

First, everyone is on their own at this juncture, there are no safe choices.

The market did reach a Macro Value area last Friday.

The tariffs are going to increase inflation. Trump is not budging, so the markets is just going to take them on.

Markets are having to decide whether they are going to panic and go completely to cash, or they are going to try to adjust to the tariffs using the old paradigm, using inflation and deficits to fight.

Today, 3 days into revolving around in the value zone, the markets are choosing inflation and deficits.

Stocks and sectors being bought today are the generally the ones that the market has been riding since the bottom in 2022.