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The Trump administration's trade policies remain a major point of uncertainty for investors, as many are struggling to determine whether President Trump's agenda will act as more of a headwind or tailwind for the US economy.
Piper Sandler chief investment strategist Michael Kantrowitz joins Market Domination to elaborate on this.
"I don't know how it all balances out because there are too many variables and too much uncertainty and too much flip flopping in terms of these policies," Kantrowitz says. "So, ultimately, as an investor, I think the way you want to think about it, since there is a lot of uncertainty, is really watch how it impacts interest rates. Because at the end of the day, it's not tariffs that are the problem — it's that if tariffs lead to inflation and push interest rates higher, that becomes the problem."
Kantrowitz suggests avoiding stocks with poor fundamentals, particularly small-cap stocks (^RUT, ^SP600) that are sensitive to interest rate changes, and instead focusing on larger companies or an equal-weighted S&P index (^SPXEW, ^SP500EW).
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This post was written by Josh Lynch