Schwab Network Tariff Reversal Boosts Energy, Materials; Tech Growth Still Strong
May 29, 2025
Ben Emons, Chief Investment Officer and founder of FedWatch Advisors, shares his insights on the recent U.S. court ruling that blocked numerous tariffs, igniting discussion on market reactions. He emphasizes the enduring strength of growth stocks, particularly in tech and semiconductors, while recommending diversification into undervalued sectors like financials. Additionally, Emons highlights international trade opportunities, spotlighting potential in markets like China and the ongoing impacts of global trade policies.
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Court Blocks Big Tariffs
- The court ruling blocking many Trump-era tariffs signals a pushback from businesses against high tariffs.
- Big tariffs like 145% on China are likely off the table, easing market tension early on.
Tariff Reversal Helps Lagging Sectors
- Tariff removal benefits sectors that have lagged like materials, energy, and staples.
- These sectors have not participated in the rally led by the S&P, NASDAQ, and semiconductors.
Diversify With Growth Plus Value
- Maintain exposure to growth stocks and technology, which lead the recovery trade.
- Add sectors like energy, materials, and financials for diversification amid economic uncertainty.