In this news:
America at a Crossroads
EntrepreneurShares LLC
The recent election signaled a clear mandate for change. While the pace and scope of reform have exceeded expectations for some, the results reflect the electorate’s conscious choice. The consequences are now manifesting across multiple dimensions of domestic policy.
Prominent business and political leaders, including Donald Trump and Elon Musk, have demonstrated a willingness to pursue reform despite sustained scrutiny and personal risk. Their persistence, while polarizing, underscores the intensity of the national moment and the urgency of rethinking long-standing economic dependencies.
Markets Reward Predictability
Markets reward predictability. When fiscal and monetary policy is transparent and rule-based, risk premiums decline and valuations stabilize. Policy stability, not volatility, is the real engine of long-term investor confidence. In the past week (early April), markets have been punished based on the lack of transparency and predictability. But this does not have to be a long-term situation. Assuming that clarity is restored, preferably sooner rather than later, markets can and will recover. But time is running out…
Tariffs: A Shift in the Economic Narrative
The introduction of sweeping tariffs represents a critical inflection point — one that is generating pronounced uncertainty in financial markets. Investor sentiment has deteriorated sharply, with concern growing around inflationary pressures and the potential for a stagflationary environment reminiscent of the 1970s.
However, current inflation levels remain modest by historical standards, ranging from 2.5% to 3.5%. Unlike past crises, such as the oil embargo of the 1970s, the United States now enjoys a position of energy independence. This foundational difference substantially alters the risk profile of today’s environment. Moreover, the long bond (10 year treasury)-owing to perceptions of increased risk-has dropped in recent days to below 10%. Oil prices are dropping below $60 per barrel. Not everything is inflationary. To the contrary, under normal circumstances these two data points would be extremely bullish for the markets.
.png)
