Archive · 2 Jun 2025
Markets Price Out Tariff Risk, Eye Reallocation, and Tax Cuts
Imagine the stock market is a seesaw, and trade tariffs were pushing it down.
Now, after some deals, the seesaw is going back up!
Investors think the worst of the tariff problems are over, even though the situation isn't fully resolved.
One expert believes markets expect a better outcome than originally thought.
Gold prices had gone up because people were worried, but they're coming down now.
Smart investors are looking to move their money from US markets to other places like India and Japan, hoping for better returns.
The US might also consider tax cuts soon.
Markets have largely priced out the risk associated with tariffs.
Gold prices are undergoing a cyclical correction within a structural bull trend.
Smart money is reallocating investments beyond US tech into regions like India and Japan.
US fiscal pressures and potential tax cuts are impacting market dynamics.
India's credit market remains structurally appealing to bond funds.
- Who
- Neeraj Seth, Founder and CIO of 3R Investment Management.
- What
- Markets have largely priced out tariff risk and are undergoing shifts in investment strategies.
- When
- Recent market movements following the US-China tariff truce over a weekend.
- Where
- Global markets, with focus on US, India, and Japan.
- Why
- Markets react to trade deals, reallocation strategies, and potential tax cuts.
- Market drop post-tariff
- 15%
- Current S&P 500 and NASDAQ levels
- Above pre-tariff levels
- Gold price peak during risk aversion
- $3,500
- Duration of US-China tariff agreement
- 90-day truce
- US Fiscal Deficit
- US is running close to a $2 trillion deficit