Weekly Market Pulse: No Tariffs Required

2025-03-03 07:10:00 ET

Summary

• There is no doubt that the market doesn’t like tariffs; stocks sell off every time Trump announces a new round, but so far, the effect hasn’t lingered.
• The S&P 500 and gold continue to outpace everything else over the last 1 and 3-year periods. Large value stocks have done pretty well too, but growth still maintains a sizable edge over the 3-year period.
• For the week it was defensive sectors like real estate, consumer non-discretionary (staples) and healthcare that did well. Utilities are still trying to price in AI and having a hard time of it.

The meeting between President Trump and Volodymyr Zelensky last Friday dominated the news over the weekend, but for investors the more important news came before that historic (or not) diplomatic faux pas (whose faux pas?). I am not an expert on the nuances of diplomacy (except to say there didn’t appear to be much of it going on in that meeting) and I don’t have any idea how last week’s rupture of Ukraine/US relations will impact the war or the economy of Europe. I have some opinions, but you know what they say about those, and I won’t inflict mine on you, dear reader. Geopolitics can – and does – impact economies and markets, but you don’t have to become an expert on the subject to invest around the changes. The effects will be expressed in markets, primarily through interest rates and exchange rates. That should guide your investments, not your emotional or political reaction....

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