Behind the Markets Podcast
A More Positive Outlook for Markets
May 16, 2025
Samuel Rines, a Macro Strategist at WisdomTree, and Chris Gannatti, the Global Head of Research there, dive into the resilient market landscape. They discuss the impact of tariffs, the overestimation of inflation, and recent geopolitical shifts, including Trump's Middle East trip. The duo explores advancements in AI and robotics, potential manufacturing shifts from China to India, and Cooperate strategies amid international tensions. They also touch on promising trends in healthcare pricing and groundbreaking biotech innovations that may drive economic growth.
50:27
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Quick takeaways
- Despite fears surrounding tariffs and low consumer sentiment, the equity market demonstrates resilience due to strong consumer spending and positive developments in technology and energy.
- Geopolitical dynamics, particularly U.S.-China relations and strategic partnerships with countries like India, are influencing market trends and shaping long-term investment strategies.
Deep dives
Tariff Impact on Market Sentiment
Discussion on tariffs indicates a significant focus on the potential for a 10% increase across the board, with China facing a 30% hike. While these tariffs are not viewed positively, the market appears to be adaptable, taking comfort from soft economic data like the EPI and CPI figures. Consumer sentiment, however, remains alarmingly low, evidenced by the University of Michigan's indexes reflecting historic lows. Most forecasts predict only a modest inflation increase from tariffs, leaving questions about the disconnect between sentiment and economic indicators.
