Within equities, relative fiscal and monetary conditions are key factors to consider. Since a tariff is effectively a transfer of wealth from the private sector to the public sector, the US stands to benefit the most since it is the only major country that has enacted fiscal stimulus in earnest. In terms of monetary policy, most global central banks have moved to normalize policy except for Japan, which has not signaled its desire to tighten. In isolation, relative monetary conditions favor Japan, but investors will have to weigh the country’s status as an export-driven economy and whether they will be exempt from future US tariffs.
Nonetheless, there are many more developments still to come in the current global trade saga. For investors, this year is shaping up to be a volatile one and will often require asking the right questions to prepare for when the answers emerge.
This is for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase or sale of any security, strategy or investment product. Although the statements of fact, information, charts, analysis and data in this report have been obtained from, and are based upon, sources Sage believes to be reliable, we do not guarantee their accuracy, and the underlying information, data, figures and publicly available information has not been verified or audited for accuracy or completeness by Sage.
Additionally, we do not represent that the information, data, analysis and charts are accurate or complete, and as such should not be relied upon as such. All results included in this report constitute Sage’s opinions as of the date of this report and are subject to change without notice due to various factors, such as market conditions. Investors should make their own decisions on investment strategies based on their specific investment objectives and financial circumstances. All investments contain risk and may lose value. Past performance is not a guarantee of future results.
Sage Advisory Services, Ltd. Co. is a registered investment adviser that provides investment management services for a variety of institutions and high net worth individuals. For additional information on Sage and its investment management services, please view our web site at www.sageadvisory.com, or refer to our Form ADV, which is available upon request by calling 512.327.5530.