Focus on Markets Overlooks Strong Fundamentals
By Dan Celia
Trump’s announcement Thursday of steel and aluminum tariffs served as the ammunition to blow up the markets, re-load it with uncertainty and double-down on worries of inflation. This move must have a concise, detailed, well-thought-out walk-back very soon. But all that aside, here is where we really are.
I’ve been trying to put everyone’s mind at ease with reminders that economic growth and corporate profits are likely to be good this year—so good that we should see the economic rally continue, based on new fiscal policies and a great environment for business. We must not forget the positive impact of fewer government regulations, lower taxes, a less-intrusive government and the stimulus from a prospective infrastructure program. All of this is creating an environment conducive to job growth and a thriving free market.
Yet, no matter how much I emphasize these things, even as most of the correlating numbers back up my enthusiasm about the economy, it seems to make little impact. Too many people are focused on markets and markets alone. People watch their IRAs or 401(k)s and when they see them going down, their attitude sinks with the news. When they see them going up, even if it’s an era of false positives and poor economic fundamentals, they don’t care much; they become optimistic.
(This post originally appeared on townhall.com | Image from townhall.com)