Last week, I wrote that: \u201cA shift in sentiment from euphoria to recession fears within a month has priced the idea of a \u201chard landing\u201d at the same odds as \u201cno landing\u201d just a few weeks ago. The reality is setting in that if the US is going to do everything on its own while the rest of the world does not, the relative cost of production will tilt away and things will be a lot more expensive. This is compounded by the fact that corporate earnings will also be hurt pro rata – so much so that GS predicts that per-share earnings among companies in the S&P 500 could drop by roughly 1% to 2% for every 5-percentage-point increase in the U.S. tariff rate. Unsurprisingly, investors were in a very bad mood as a result, for three reasons…<\/p>\n
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