Much of the recent market volatility has been blamed on uncertainty surrounding tariffs and the impact they will have on inflation and economic growth. But as WisdomTree global chief investment officer Jeremy Schwartz there's a more fundamental market shift that is also upsetting things. Find out what it is in the video above.
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It's very interesting. We were calling for a bit of a correction this year, uh, and we had some fears on where earnings expectations too high and that we actually thought rates could pressure higher, uh, and so you're definitely getting some of the questions on earnings. And now rates have gone lower, uh, so actually our our view was that rates could pressure the valuation environment, and it's really not gone that way. Um, I, you know, I think the the real interest is you hear all these uncertainty over tariffs is really the rotation to from growth to value has been in full force. And so some of that has some policy related, but some of it's just a move from the AI narratives and what's been driving the stocks fundamentally. So even more so than all this uncertainty over policy is also just the the real change in in what's driving markets, going from US to Europe as another example. And, you know, I heard some of the question, will we get the certainty on Wednesday and clarity? I, you know, I think you could still have a a bit of uncertainty post this month. I'm not sure we're going to get all the clarity we we all desire. I think this stuff could go in iteration after iteration for some time. Um, the markets clearly don't like tariffs, but what's going on in the markets are beyond that with this other rotation.
