Currently, economists seem to favor several financial instruments for investment based on positive market sentiment and anticipated changes in trade policies.
S&P 500: The optimism surrounding potential trade deals, particularly with China, is boosting investor confidence in larger cap stocks that comprise the S&P 500.
Gold: With expectations of reduced tariffs leading to cheaper imports from China, gold is seen as a favorable investment given its traditional role as a safe haven asset during times of uncertainty.
Macroeconomic Indicators: Positive developments in trade negotiations could support overall economic growth, making investments aligned with macroeconomic health attractive.
US 10-Year Bonds: Rising treasury yields are often indicative of economic growth, making these bonds appealing for investors seeking stable returns.
Overall, the combination of easing trade tensions and improving economic indicators points to a positive outlook for these financial instruments.
A reduction in tariffs could lead to increased imports from China, positively affecting overall market sentiment.
The potential pause in tariffs and positive trade news from China may help affirm a soft landing in the economy.
Markets are very happy due to positive news on potential trade deals, which could boost GDP and larger cap stocks.
Treasury yields have increased, which is generally favorable for larger cap companies.