Tuesday, July 29, 2025

Are Stock Markets Ignoring US Economic Risks?

How Trump muddles the stock market by Tej Parikh
https://www.ft.com/content/01867873-d328-40d9-85c5-9a5db992354e
That US stock markets are trading at historically rich valuations at a time when import duties are close to their highest in a century (and when rates could remain elevated) is unsettling.
While optimism around AI and tariff resilience are both driving the S&P 500 higher, noise is undoubtedly complicating price discovery. Sooner or later economic reality will catch up. Flooding the zone can delay a reckoning — but it can’t prevent one.
 
Trump’s New Trade Order Is Fragile
https://www.wsj.com/economy/trade/trumps-new-trade-order-is-fragile-ef8bb49a
One-sided deals lack the staying power of past negotiations. 

Why Markets May Soon Call America’s Tariff Bluff