- Investors have been forced at an account With the apparent truth, Trump is serious about implementing a great tariff for many American commercial partners, if not all. While there are a lot of upcoming turmoil, CEO of Morgan Stanley Management Management Jim Caron said that merchants are well equipped to draw how different scenarios could affect the global economy and companies' profits.
President Donald Trump's tariff prompted 25 % on imported vehicles and auto parts shares to the bottom on Thursday, but the S&P 500 indicators and other main indexes are relatively fixed. This may be another sign that investors are increasingly confident in the markets that have made it exceeded “uncertainty in the peak tariff”, as Jim Caron, CEO of Morgan Stanley Investment Management, even if there is a lot of turmoil about the upcoming American commercial policy.
The stocks rose to start the week after reports from Wall Street Magazine and Bloomberg She said that the administration was considering narrowing the scope of the so -called “mutual definitions” that were revealed on April 2, which the President referred to as “Liberation Day”. Regardless of what is revealed, Karen told luck Earlier this week, it is better for investors to interact with these developments than it was earlier this month.
“There is a difference between uncertainty and volatility,” said Caron, the chief investment official in the Governor's portfolio.
He said that the markets despise the first famous, because it is impossible to determine, for example, whether the president is completely talking about imposing taxes on imports as a negotiating tactic. Now, investors have been forced at the expense of the clear truth that Trump is serious about implementing a big tariff for many American commercial partners, if not all.
Of course, it is impossible to determine the extent of these definitions in advance, and do not care about the sectors that will strike more or whether revenge on other countries will lead to a global trade war. Caron said traders can determine how different scenarios affect the global economy and companies' profits, which was called “fluctuation management”.
He said: “This is in the financial markets,” We are really equipped to deal and understand. “
Investors have already managed the economy expectations this year. Goldman Sachs recently reduced its expectations for the growth of the US GDP from 2.4 % to 1.7 %, a number Caron said it has become a consensus in Wall Street.
When it comes to the impact of definitions on inflation, Caron, head of the Federal Reserve, Jerome Powell, was martyred last week. The US Central Bank president said that one -time shock will lead to “transitional” or temporary, with reference to a series of escalating prices.
The nature of Trump's tariffs revived the S&P 500 correction lands on March 13, as the index fell by 10 % of its highest level ever in mid -February. The nasdaq technology compound decreased by 14 % in that period, but both indexes have increased more than 3 % since then.
Will the “American exceptional” trade continue?
Karen said his team dealt with the decrease as an opportunity to buy in both America and Europe. In recent years, investors have been much better than their money in US shares more than anywhere. However, the chaotic bond of policy advertisements from the Trump administration, however, has markets that are “exceptional”.
While the S&P 500 decreased by almost 3 % in 2025, the shares increased through the pool as the continent is preparing to spend the defense and infrastructure dramatically amid fears of abandoning us. Stoxx 600 increased in Europe by 7 %, while in Germany, where the government reached an agreement to cancel a trillion dollars lock at new expenses, the DAX index jumped in the country more than 12 % in that period.
Meanwhile, the S& P China 50 has increased more than 16 %, although Trump raised the tariffs on China by 20 % since the beginning of its term, leading to an increase in tensions between the world's great powers. Optimism about the technology sector in China and artificial intelligence capabilities has increased significantly since the sudden success of the R1 in Deepseek. Joe Quintlan, who oversees the market strategy for wealth management departments at Bank of America and Maryil Lynch, said Wall Street is optimistic about the government's efforts to enhance the brand's demand for consumers.
He said, “China has really left Bazuka's financial.” “They have really become aggressive with monetary policy.”
The poll of the Monthly Bank of America's monthly fund found that 69 % of the respondents said that the “American exceptional” had reached its climax, as it reported the largest decrease in allocating stocks in the United States since Bofa began conducting the survey in 1994.
Investors are careful when looking abroad. Stephanie Link, who runs a 6 billion dollar wallet as a strategic head of investment in HighTower Adviss, told, luck Earlier this month, she was cautious about chasing gains in Europe, saying that the most stringent organization weighs the margins of profit.
She feels less comfortable towards China and its authoritarian system, noting the mysterious disappearance of the founder of Alibaba Jack MA. before handshake With Chinese President Xi Jinping at the event last month, a Master was slightly seen only in public places after criticizing the Chinese financial organizers in 2020.
She said LINK is more upward in India, where she noticed that companies like Apple transport their supply chains to reduce exposure to China – and the growing middle class will support growth.
It makes sense for investors to search for some diversification, as the S&P 500 is trading about 22 times from the profits forward. The average of 20 years of the index was about 16, According to To FactSet.
“I think we have an exceptional American, but I think it comes at a very high price,” Link said earlier this month.
At least, some investors feel that the customs tariff image gives up a little.
This story was originally shown on Fortune.com