Tariffs will dominate the news this week as President Trump followed through on his threats against China, Canada and Mexico. I have long been against tariffs as an economic tool and I remain that way. No country can tariff its way to prosperity. No one wins a trade war. There are only losers. Yes. I fully understand that other countries do not play by the rules. But I am a free trader. I seek trade deals not protectionism.For the second straight Monday, the market are going to take a hit at the open. Recall that last Monday it was all about DeepSeek and AI. The financial markets saw a very small loss on Friday, but today is going to see follow through selling, likely below last week’s lowest point. The markets seemingly did not believe the tariffs would unfold and now they will price in the downside with a possible short-term overshoot.
To end on a happier note, February begins and it averages +0.50% when starting the month in an uptrend like we have now. In a perfect seasonal world, the markets are usually stronger during the first half of the month than the second half.On Friday we bought SSO.More By This Author:Not A Market To ChaseAll-Time High S&P 500 – Is It The Selling Opp I Forecast?Fearless Forecast 2025 – Calm Before The Storm
