Markets Feel Tariffs Are a Tactic, Says SGMC Capital’s CEO

The transcript discusses the increased market risks due to US tariffs on allies, particularly Mexico, and the implications for global trade. It highlights market complacency despite potential escalations, with safe haven assets like yen and gold not reflecting the risks. The bond market's quick movements are noted, with US Treasurys expected to gather demand. The discussion also touches on the use of trade as a political tool and the uncertainty it creates, benefiting safe havens.

What is the primary concern about the US tariffs mentioned in the first section?

• The tariffs are too low.

• The tariffs are linked to illegal migration without clear measures.

• The tariffs are only on China.

• The tariffs are temporary.

How does the market currently view the US tariffs according to the second section?

• As a reason to invest in equities.

• As a sign of economic stability.

• As a tactic to gain leverage in trade deals.

• As a permanent change.

What is predicted to happen to safe haven assets like gold and yen?

• They will be unaffected.

• They will remain stable.

• They will depreciate.

• They will appreciate.

What new narrative is suggested by the use of tariffs beyond trade?

• Tariffs are only for economic reasons.

• Tariffs can be used for issues like immigration.

• Tariffs are a sign of economic growth.

• Tariffs are irrelevant to global trade.

What is the bond market's reaction to the current economic environment?

• Increased demand for US Treasurys.

• No impact on US Treasurys.

• Decreased demand for US Treasurys.

• Stable demand for US Treasurys.