The longer uncertainty goes on the worse it is for guidance, says SoFi's Liz Young Thomas (youtube.com)
When tariffs being less severe was announced it didn't abate the day's selloff. People thought the exemptions might be more.
They're watching credit spreads, which are only up 0.35% off mid-Febuary low.
'Priced for perfection.'
When Trump was elected there was ‘an overwhelming expectation what was about to happen to the economy.’ People thought it meant pro-growth, pro-cyclical, pro-US politics, but currently there's a trade war with several countries (some unexpected).
MongoDB is being used as an example, because it went down 25% on the day. Super high value, super high momentum, super profitable companies got crowded, some speculate.
The crowding into these high-profit companies has also meant that some really high-quality companies are just getting ignored. All-weather businesses, so it doesn't matter what the administration does.
Lower rates were supposed to be good for equities, and no ratecuts seem more likely than recently.