Why Stocks Aren't Sweating Canada/U.S. Tariffs

Heading into the weekend, one would be forgiven for thinking the only thing turning heads at vast speed in our nation’s capital would be IndyCars racing around the National Mall for three hours Sunday.[i] But the White House’s trade talks with Canada rivaled them for fast turns, veering from midweek reports of a “deal” to new tit-for-tat escalation Saturday. Headlines warn both sides will feel an economic pinch, with Canada bearing the brunt of it. Now, we think tariffs are economically negative—especially for the imposing nation. But given these tariffs’ bark remains far bigger than their bite, we think this is a stretch. Stocks long since moved on from tariff whiplash, and we think their calm hints at economies’ underappreciated resilience. Read Full Article »