The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Nothing stops.
US investors are kept the bull running. Futures lost as much as 35 points in the premarket before climbing into the open. The S&P opened flat and went consistently positive by 10:30 AM. The data was dull and so were the headlines although the JOLTS job openings (7.391 mm vs 7.1 mm est & 7.2 mm prior revised from 7.192 mm) data bolstered the strengthening economy story. Yields climbed small on the back end of the curve, a confirmation of economic strength. Along the same line, Fed cuts for the year came in a bip to 50.
Markets are humming along happily now and risks are given lip service more than consideration. We are 3% away from setting new highs, which would be the final confirmation that the bull market never left us. For all the longs that think the same, they are front-running the last technical signal and they are getting it right.
The drama of tariffs and the fear of recession are effectively behind the markets. Sure, the President could do something new to shake up the market and threaten the economic situation but investors are dismissing that risk and assume that even if it happens, it would be saber-rattling versus a legitimate risk.
US equity markets have firmly concluded that Trump’s tariff talk, or any variant of trade disruption, will be treated like the boy who cried wolf.
As long as the wolf never comes, this will be a wonderful investing tactic.
You can imagine what it will be like when the tactic is not so wonderful.
See you tomorrow.
-Mike
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