Tariff truce ignites market fireworks—but investors beware: uncertainty remains
Key points:
- Tariffs have dropped significantly, but remain well above pre-crisis levels, creating lasting economic impacts.
- Uncertainties linger: The 90-day truce is temporary, and further tariff spikes remain possible.
- While recession risks have reduced, economic damage may already be baked in—stay cautious but optimistic.
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It almost felt like New Year’s Eve in the markets on Monday. After weeks bracing for the worst, investors opened their eyes to a spectacular surprise: the U.S. and China agreed to step back from the brink, announcing a 90-day pause in their bruising trade war. Tariffs were dramatically slashed from recent sky-high levels, sparking a global stock market rally.
Yet, investors would be…
