The Trump Capitulation Trade

Even if we are past the peak of tariff lunacy, the path back down Mount Stupid is sure to be long and bumpy, while much of the damage of the last few weeks is likely to be permanent

A degree of calm has returned to the markets after the chaos of the last few weeks. Investors appear to have taken Donald Trump’s decision to call off his demented attack on the independence of the Federal Reserve and his claim that to be negotiating on trade with China as a sign that we are past peak tariff lunacy. The result is that the S&P500 has reb…