Apr 11, 2025

Recently, I came across news about President Trump’s decision to reduce most tariffs to 10%, causing uncertainty in the market. UBS strategist Bhanu Baweja advised investors to sell any rallies until the impact of tariffs on growth is known. The stock market faces risks, with the S&P 500 potentially slipping below 5,000 due to reduced tariffs negatively impacting earnings growth.

The financial markets are on edge following the tariff announcements and pause by President Trump. Baweja highlighted that the economic hit from tariffs was not fully priced in, potentially impacting earnings growth from domestic demand hits. As earnings season approaches, investors are eager for insights into the tariff impact on the market. Concerns were raised about the Fed’s ability to mitigate growth fallout amid ongoing uncertainty.

UBS is focusing on defensive sectors like utilities, REITs, and certain consumer staples and discretionary sectors. They are buying bonds in the three-to-five year sector and showing interest in gold as a safe-haven asset. Market volatility is significant, with portfolios reacting to tariff discussions. Investors are advised to remain cautious and vigilant in navigating the current market landscape to capitalize on opportunities.

In private equity news, Andrew Rosato joined FIRSTavenue as a partner, while Upfront Ventures promoted Jacques Sisteron, Kesar Varma, and Peter Zakin. Inflation in March was lower than expected, with CPI rising 2.4% year-over-year. President Trump’s tariff announcements and market turmoil caused recession fears and a stock market rally. Citadel Securities is in talks with banks to provide better pricing on fixed-income trades.

The news also mentioned Google DeepMind staff under noncompete agreements and a Texas lottery arbitrage case sparking investigations. A proposal for an exchange program for professionals in different fields was discussed, aiming to foster collaboration and knowledge-sharing. Other topics included Trump’s trade policies, startup mysteries, and UBS’s criticism of increased capital requirements. Overall, these news pieces shed light on the complexities and challenges in the financial and business world.

Stay Well!