The risk of a retaliatory trade war could rock richly valued global stock markets but it shouldn’t come as a major surprise to subscribers – remember our outlook/mantra for 2025:
- We are looking for the ASX to advance in a “3-steps forward, 2-back fashion” through 2025 with buying the dip as our preferred course of action.
Markets hate uncertainty and that’s what Trump has brought into play with his tariffs, rate cuts could be off the table, something not priced into stocks. Australia’s semi-annual profit season kicks off this week, with Amcor, News Corp, REA Group and Nick Scali among the few ASX companies scheduled to release their accounts for the 1H. We remain bullish medium term but an “if in doubt stay out” pullback is easy to envisage as Trump flexes his power.
- SPI Futures are calling the ASX200 to open down ~100-points this morning after Friday night’s tariff
MM is cautiously bullish toward the ASX200 – just!
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