Summary
President Trump decided not to impose tariffs on eight European allies over Greenland, which led to a stock market rally. Some investors believe Trump's policies are often just talk, causing them to price in a less aggressive stance. However, relying on the market to predict or influence Trump's decisions might be challenging.
Key Facts
- President Trump dropped plans to impose tariffs on eight European allies over Greenland.
- The stock market rallied after Trump's decision, with the S&P 500 rising by 1.2%.
- Investors often assume 70% of Trump's policies are not very serious.
- Some investors think the market can make Trump change his economic policies.
- Stocks fell earlier in the week due to global bond selloffs and concerns about tariffs.
- Expert opinions suggest the market is not good at predicting geopolitical risks.
- Confidence in a quick policy change from Trump is not always realistic.
