Please do add in comments if I missed any !! Also list what is counterbalancing these negative things for stocks to skyrocket?
- Tariffs - Caused the slowdown in shipping, Earnings guidance for Q2 and impacts many other things.
- Moodys downgrade of US credit
- GDP growth negative last quarter
- Inflation (I am amazed that I am listing this fourth as of today while it would have been 1st 60 days back)
- Russia/ Ukraine war and India Pakistan Tensions post a micro war. Israel / Palestine still recovering.
- Oil prices (No one seems to be noticing the tug of war going on between Middle East and US oil)
- Some politics - budget alignment, etc.
- Weak Labor unemployment numbers.
Now given this we still rose 22% since liberation day!! Given the overbought conditions I feel we are not in such a great state for S and P to maintain anywhere above 5200 but here we are close to 5900 and still moving.
What breaks the camels neck this year? A proper nuclear armageddon?
PS: China just added 75% tariffs on plastics with similar undertones of logic of Trump policy (can manufacture internally and don’t need your substandard stuff). 90 day truce did not hold!!
https://amp.scmp.com/economy/china-economy/article/3310827/china-puts-heavy-75-tax-us-imports-vital-engineering-plastic
