Firstly Trump imposed tariffs on Brazilian and Argentinian steel and aluminium that cough investors by surprise rattling markets. Secondly weaker manufacturing data in both Europe and the US compounded the already weak sentiment. Shares, Bonds and the USD were all hit hard mainly because both events are indicative of things yet to come. Markets are overvalued, bulls should indeed reassess... there is nothing but sentiment to drive markets higher, if that dwindles, a correction is more likely that new highs. "tariff man" has again struck for reasons other than trade (as he did with Mexico)... just how much can Trump keep imposing new taxes on Americans before the consumer stops the extravagance that's lifting sentiment? The guy has no creative solution to anything other than the blunt instrument of tariffs for everything... He'll tax America into recession! It's good that he's looking after the farmers but he's doing so out of the pockets of other Americans.
Putting a tax on raw materials or on components is counterproductive his "made in America" objective. Some tariffs on some fully manufactured goods is Ok, but blanket tariffs are not.
Aftermarket prices continue to fall.
