Donald Trump's tariffs and inflation threaten record run-up in shares
3 months ago

Donald Trump's tariffs and inflation threaten record run-up in shares

ABC  

Shares suffered heavy falls on Thursday and Friday, closing the week at a three-month low. "Oh, we're trading ugly, there's no two-ways about it," investment firm MooMoo's chief commercial officer Michael McCarthy said. "We're changing the way we're thinking about the future and, as we know, markets don't price what's happening today, the share market prices in what's happening in the future. "So a pull-back to 7,900 or even 7,600 wouldn't derail the overall positive outlook and it's important for investors to understand that," Mr McCarthy said. "Shares remain torn between the negatives of rich valuations, higher bond yields, uncertainties as to how much the Fed will cut rates, uncertainties around Trump and geopolitical risks on the one hand, versus the positives of global central banks still being in an easing cycle, goldilocks economic conditions particularly in the US, optimism that Trump will reinvigorate the US economy and prospects for stronger profits ahead in Australia."

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