The minute I receive my paper copy of Barrons - yes I still like the paper copy ( my kids would roll their eyes!) - I open to the Up and Down Wall Street editorial. This is my favorite part of reading Barrons.
This week Randall Forsyth did a great job. I think the following quotes from his article summed things up nicely.
"Wall Street’s exuberance contrasts with the increased trepidation over tariffs among Main Street businesses. As Peter Boockvar, chief strategist at Bleakley Advisory, notes, the University of Michigan’s latest survey, released on Friday, showed a sharp deterioration in business expectations.
The study found that the decline had accelerated markedly in early July, as news about tariffs increased significantly, with negative responses about government policies tying the record reached in 2013, after the federal government’s shutdown. In contrast, the stocks seem immune to any negative results until they “stare them in the face,” Boockvar pointedly observed."
"What market participants probably will want to know is what impact other policies may have on the economy. While the tax cuts put one foot on the gas pedal, tariffs place another on the brake. Fiscal stimulus pumps up demand; trade curbs restrict supply. The uncertainty dampens confidence.
That stocks have kept advancing suggests investors expect a trade war will be averted. If they’re wrong, they can sell in an instant. Business managers, who must commit to budgets, capital outlays, and hiring, can’t turn on a dime."
One thing I'll say about the current market. It never fails to entertain. The show goes on. After all, something had to take the void left by Barnum and Bailey's closing down!
Enjoy the show. If you listen carefully you can hear the tune from the greatest show on earth! Can you hear it? Step right up........
