“Do not save what is left after spending, but spend what is left after saving.”
-Warren Buffett
Here’s what you need to know this week:
· Stocks continue to oscillate on tariff news
· Tariffs face an uncertain future
Back and Forth
Stocks briefly fell last week after President Trump announced a new suite of tariffs on the European Union.Stocks then regained their losses once Trump announced a pause on the EU tariffs until July 9th. Markets were also bolstered by a deal offered by India that would slash most existing tariffs with a few exceptions for agricultural products[1].
Stocks aren’t the only metric to improve after this pause. The University of Michigan’s Conference Board Survey shows Consumer Confidence and Economic Expectations bouncing back at the fastest rate since 2011:
Pause and Effect
Much of this tariff news was made obsolete yesterday when the US Court of International Trade ruled that President Trump overstepped his presidential authority with the “Liberation Day” tariffs[2]. Trump and his team have already appealed the ruling and say they are prepared to take the fight to the Supreme Court if necessary.
It’s still early but there are currently two schools of thought on this court ruling. On the one hand, markets have clearly disapproved of the tariff plan so far. Every tariff announcement has sent markets lower and every pause or deal has sent stocks higher. True to form, markets initially moved higher after this court ruling was announced.
On the other hand, this court ruling may extend the window of tariff uncertainty. Markets have posted consistently strong gains as each pause or deal has been announced and this ruling may have increase market volatility in the short-term. We will likely have more to say about this next week once we know more about Congress’ and the administration’s plans to combat this ruling, but for the moment it seems that volatility has returned.
What Else
· Elon Musk is officially leaving the Trump administration to spend more time focusing on his suite of companies
· Russia unleashed three massive bombardments on Ukraine over the last week, shredding hopes of an imminent truce
· Israel & Hamas are once again negotiating terms of a truce in Gaza; negotiators say both sides are close but no agreement has been reached yet
· India & Pakistan have held their uneasy ceasefire while US officials attempt to broker a more long-lasting peace
· The OKC Thunder are heading to the NBA finals for the first time since 2012! They will play the winner of the series between the Indiana Paces and the New York Knicks
What We’re Reading
Researchers are plumbing the depths of the Great Lakes in order to learn more about shipwrecks over the last two centuries. The Lake Guardian and its companion underwater drone named Rhody are taking videos and making 3D models of more than five dozen ships. The researchers hope to learn more about what caused these wrecks and contribute to information in maritime museums. Click below to learn more about the expedition and to see the incredibly clear pictures and videos taken by Rhody:
What’s Happening Downtown
The Myriad Gardens are hosting a Guided Walking Tour of the grounds this Saturday, May 31st. The event is free to attend, runs from 10:00 to 11:00 AM, and will educate visitors on the variety of exotic plants within the gardens. Click below to learn more:
· https://myriadgardens.org/events/guided-walking-tours/?mc_cid=7f99d8d03f&mc_eid=71bf387036
To read more from our blog, click here
Written by: Kane Ogle, CFP®
Steve Beck, Kane Ogle, CFP®, Amber Eduvigen, CFP®, Cale Olbert, CFP®, Brett Valentine, Brandon Ingerson, Jenni Hess
Sources: [1] Yahoo! Finance [2] Reuters