@theMarket: 'Demolition Day' in global marketsBy Bill Schmick,
02:21PM / Friday, April 04, 2025 | |
Stocks fell to kick off the second quarter following the worst quarterly performance for equities in the past three years. The culprit was Wednesday evening's "Liberation Day" announcement of tariffs far worse than the markets expected.
By now, most readers know that the president not only levied a 10 percent tariff on all nations across the board, but he also added reciprocal tariffs to that total on individual nations. China was signaled out for the harshest treatment with a combined 54 percent total round of tariffs. In response, China announced 34 percent tariffs on U.S. goods.
As I warned readers last week, these tariffs would be 0 Comments
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@theMarket: The Tariff War BeginsBy Bill Schmick,
01:50PM / Friday, March 28, 2025 | |
On April 2, Donald Trump has threatened to levy tariffs on several nations. This is in addition to the tariffs he has already imposed on China, Mexico, Canada, and now global auto producers. The question is whether the "if" in tariffs is still possible.
No, it isn't. The president is making good on his campaign promises to create an even playing field between the U.S. and our trading partners. Steel, aluminum, and the global auto tariffs he announced Wednesday evening are only the beginning.
Unlike his first term, this time around his tariff initiatives will be "extensive, explicit and enforced," as one hedge fund manager told me. 0 Comments
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@theMarket: Fed No Longer in the Driver's SeatBy Bill Schmick,
03:25PM / Friday, March 21, 2025 | |
This week, the Federal Reserve Bank hiked its inflation forecast and reduced the growth target for the economy this year. Despite this news, traders termed the March FOMC meeting a "dovish pause," although it did not help the stock market.
The upshot of Chairman Jerome Powell's Q&A session on Wednesday afternoon after the FOMC meeting was that as far as the future is concerned, the Fed would need to wait and see just like the rest of us. In the meantime, the bank decided to slow its quantitative tightening program. That was interpreted as dovish by most Fed watchers since it does add liquidity to the credit markets.
Powell did say tariffs 0 Comments
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@theMarket: The Markets' Flash CorrectionBy Bill Schmick,
03:17PM / Friday, March 14, 2025 | |
The market's decline has been one of the fastest in history. The fall has been fueled by the Trump administration's economic policies. The question most investors are wrestling with is what to do about it.
Looking back on this period in a year or two, I guarantee that most investors will have trouble remembering exactly what happened. There is nothing abnormal in this decline thus far except its speed. It is a simple garden variety pullback, which occurs at least once a year if not more. It is the price of doing business for equity investors and savers with tax-deferred retirement accounts.
Given that, the decline is probably a good thing for an 0 Comments
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@theMarket: Tariff Talk Trashes Stocks as Stagflation Fears RiseBy Bill Schmick,
04:20PM / Friday, March 07, 2025 | |
The latest worry to plague Wall Street is lower growth and rising inflation. What is worse, the tariff war that President Trump insists will lead to a "golden age" for America is proving to be a nightmare for financial markets.
"There will be a little disturbance, but we are OK with that," the president admitted Tuesday evening in his address to Congress. His mission that night was to sell America on his vision of a new economy of high tariffs, low immigration, low taxes, and low regulation. Main Street is buying that message, with approval ratings of almost 70 percent of those who watched the address. Unfortunately, global financial markets are not so 0 Comments
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