Three Things – Counterfactuals and Revisionist History

From disciplinefunds.com

Here are some things I think I am thinking about. 1) Tariff counterfactuals. The stock market has returned to where it was before the whole tariff fiasco happened. And now I am seeing people say “see, the tariff worries were all overblown!” The endgame here played out more or less the way I said it would back when I pegged 70% odds of “scenario 2” in my April 19th note. Trump mostly caved on China and the effective tariff rate has now dropped to a rate that is still high, but nothing remotely close to the embargo style levels we had in mid-April. And the markets have rightly bounced back. But that doesn’t ... (full story)