Markets Trade on Sense: Tariffs and Global Trade Reality
Instead of reacting to fleeting news like Powell’s Fed statements, markets are now trading on the reality of tariff negotiations with China—a move grounded in productivity and consumer impact. This shift reflects a return to fundamentals in global trade.
As I Predicted in 2018: Trade Tensions Reshape Markets
The concept of “The Global Hand” explains trade dynamics between nations. When trade flows freely and increases, markets thrive. Historically, high trade volumes signal economic strength, benefiting businesses and consumers alike.
However, an imbalance emerged. The U.S. sent vast sums to trade partners while receiving little in return, allowing other nations to assume dominance and undervalue reciprocity. This eroded America’s trade leverage.
President Trump’s strategy addresses this payments imbalance through tariffs and restrictions on American goods entering foreign markets. By reasserting U.S. purchasing power, these policies aim to restore American leadership in global business and trade, prioritizing fairness and economic strength.