From the desks of Stanley Katz & Lauren Madera
HAPPY SUPER BOWL SUNDAY!
The three major U.S. stock market indices were three-and-out last week (i.e., DJIA: -0.54%, S&P 500: -0.24%, Nasdaq: -0.53%). Time to punt?
Markets stumbled through a choppy week as new trade policy shockwaves rippled through the financial world. President Trump’s surprise announcement of potential 25% tariffs on imports from Mexico and Canada (with some exceptions for Canadian energy) sent stocks on a rollercoaster ride. J.P. Morgan’s latest earnings analysis suggests this uncertainty comes at a delicate time, with fourth-quarter corporate results showing mixed signals. Although 77% of companies beat expectations, there are growing concerns about the impact of trade tensions on future profits.
Schwab’s research team paints a particularly sobering picture of what’s at stake, estimating these tariffs could impact $1.3 trillion in trade, representing about 43% of U.S. imports. It’s like economic dominoes — while Mexico’s tariffs have been delayed by a month, Canada has already announced retaliatory measures on $106 billion worth of U.S. goods. The Federal Reserve estimates this trade tussle could knock 1.2% off U.S. GDP and add 0.7% to core inflation, making their job of balancing growth and price stability even trickier in the months ahead.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
J.P. Morgan Asset Management:
Schwab:
Capital Group:
Invesco:
James Investment Research:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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