Closing Thoughts for the Week

While not directly a market-related event, the social media sparring match between Donald Trump and Elon Musk will likely be remembered as the highlight of the week. From an economic view, the labor market data was mostly mixed. Overall, investors seem to be in a relatively decent mood still as the primary risks remain on the geopolitical front.

It was one of the most volatile weeks in terms of trade war developments yet, however, the markets largely reacted with a big “meh”. It feels like the markets have gotten tariff fatigue and are becoming fine with just ignoring short-term developments knowing that they’re probably going to change again in a day or two. For those looking for some sense of predictability and/or stability in this market, there probably won’t be much for a while.

And just like that, we’re back in a period of great uncertainty. Not surprisingly, the markets didn’t take the news well. When stocks, bonds and the dollar are all declining at the same time, there’s some sort of disconnect happening. It’s important to note here that Japan could be ready to make the situation even worse. This past week, it looks like investors got the rug pulled out from under them again.