Markets in Flux
Trish and Rob discuss all the latest developments as markets continue to process what has become a highly fluid situation on tariffs.
With Rob on the ground in Japan meeting with investment industry contacts, volatility is still elevated but appears to be stabilizing.
Stocks have responded positively to news on tariff exemptions for electronics, while NVIDIA (NVDA) has made a major announcement regarding its intention to start building AI supercomputers “entirely in the U.S.”
The backdrop of NVDA’s announcement is the very serious risk of China making a move on Taiwan.
There has been speculation that heightened friction between the U.S. and China increases the possibility of an invasion—but China appears to be focused at the moment on improving its image on the world stage as the champion of global cooperation.
With tariffs potentially creating a growth shock to the global economy, recession expectations have risen. Yet Treasury yields, which typically fall as the growth outlook deteriorates, have also moved up.
Trish and Rob explain why this is happening and the difficult situation Treasury Secretary Scott Bessent now finds himself in as he seeks to maintain leverage in trade talks without triggering a market crisis.
Gold has dramatically outperformed stocks, and some major banks have just boosted their price targets to as high as $4,000 per ounce. Is the world potentially entering a new era in which the U.S. dollar no longer plays the central role?
Gold is not alone when it comes to decentralized money. Gold’s digital cousin is Bitcoin, which has displayed resilience in recent weeks as many other asset classes have come under intense selling pressure.
Bitcoin, along with gold, could emerge from all the tariff volatility as a long-term winner, as investors around the world seek to boost their allocations. This should have positive implications for Strategy common stock (MSTR) and the company’s high yielding convertible preferred stock (STRK).
And, last but not least, why is a Big Mac in the middle of Tokyo about 30% cheaper than it would be in the United States?
The U.S. dollar has weakened substantially relative to the Japanese yen and other major currencies in recent weeks but remains quite strong after several years of appreciation.
With market conditions shifting rapidly and geopolitical tensions high, 76research is here to keep you well-informed!
