In recent weeks, headings about tariffs between the U.S., China, Canada, and Mexico– and the marketplace volatility they have triggered– have controlled the news cycle. The specifics change daily, in some cases per hour, which has created a fluid and rapidly developing financial and market environment. It is not a surprise that provided these and other threats to U.S. and international financial health, stock and bond markets are experiencing huge relocations. Many financiers are stressing that the tariffs and resulting trade conflicts might cause U.S. development to slow, and inflation to rise. While last year's market relocations were dominated by speculation about the pace of Fed interest rate cuts, we are seeing signs of much deeper concern about the macroeconomic outlook. Bear in mind that markets do not like uncertainty, but the US economy is still growing steadily, and the general task market has not materially gotten worse. Nevertheless, further volatility is now something we anticipate.
