This podcast analyzes the confusing signals from recent U.S. public policy announcements regarding tariffs and spending cuts. The speaker, Michael Zezas, explains that while tariff announcements have been frequent, implementation has been slower than anticipated, with tariffs on Mexico and Canada potentially delayed due to ongoing negotiations. He notes that tariffs on China are likely to increase further due to unresolved disagreements. Zezas concludes that this policy uncertainty, coupled with the potential costs of supply chain realignment, makes a stronger case for investing in bonds rather than equities, despite the potential for equity markets to perform well in the short term. The potential for negative economic impacts from tariffs and geopolitical risks are highlighted as reasons for a more conservative investment strategy.
