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To finish my thought: right now the market reaction is extreme, but it's fake in the sense that if tariffs were lifted tomorrow, the market would most likely go
by dexterlagan 2y ago
To finish my thought: right now the market reaction is extreme, but it's fake in the sense that if tariffs were lifted tomorrow, the market would most likely go back to its former glory. In 3-4 years, once both domestic and foreign infrastructure has been built, it may not. If supposed massive investments are actually being made in US infrastructure, and that tariffs force companies to bite the bullet and stop producing abroad with cheap labor, what will happen when these incentives vanish? Will they go back to cheap labor? People will always prefer a 1k iPhone to a 2k iPhone. Especially if purchasing power has halved in the mean time. I'm expecting an extreme rubber band effect either way.