Liberation Day Arrives!

Well, he did it. Trump has singlehandedly changed the world and whatever happens, good or bad will go down in history. 

One overwhelming narrative among the economic profession is the groupthink on how disastrous these tariffs are. This is of course a comfortable position to take since just about everyone agrees. 

These economists are supposed to be cool headed rationalists but at the moment they don't appear so. Any economists who says tariff are "all bad' or "all good" is biased, The reason is that all policies have good and bad aspects and it depends on what side you are on. 

For example, Billy who gains a job in Alabama as a result of a company building a factory there may well think tariffs are a great idea. Yes, there might be higher prices for some of the goods and services he buys, but he can choose now which goods and services are a priority. He may decide to forgo the daily coffee because he decides having a steady job and saving some money is better for him long term

Across the way Mr Suzuki who works at the Toyota factory in Nagoya, Japan, probably thinks tariff are a bad idea as car exports are now 25 percent more expensive.

Two sides to every coin.      

Every media talking head loves to get out a headline as quick as possible as if getting eyeballs is the objective. It doesn't matter what you say, just say something.

Wiser heads will take some time to investigate the tariffs and also look at the potential responses and impacts. It's not overly emotional to do so, but it is simply the most effective approach. Cool calm heads prevail. 

So we will have a podcast special on the tariffs, but we won't be making all good all bad statements as they don't really help you as an investor. 

Stay calm, be thoughtful, and watch the ongoing developments because you are living through a moment of history where the global economy and trade relationships may change radically.  There is no need to rush around like all and sundry are doing. 

Markets move for many reasons, but in the end they can still only go two ways - up or down.