This episode explores the impact of policy shifts and trade tariffs on global markets. Against the backdrop of recent market volatility, Josh Schiffrin, Chief Strategy Officer and Head of Financial Risk at Goldman Sachs, discusses the inflationary and growth implications of tariffs, suggesting it's a combination of both. More significantly, he analyzes the breakdown of usual market correlations, particularly the divergence between equity and interest rate movements, attributing it partly to Chair Powell's hawkish speech and a rise in risk premium. As the discussion pivoted to risk assets, Schiffrin advocates for buying dips in equities with a long-term perspective, acknowledging considerable uncertainty but maintaining a long-term optimistic outlook. He further predicts a weakening US dollar, a steepening yield curve, and bearish energy markets. Finally, Schiffrin anticipates a crucial 90-day period to observe the unfolding trade situation and hopes for a calmer market environment. This analysis offers valuable insights into current market dynamics and potential investment strategies in the face of significant policy uncertainty.
