- Ring The Bell
- Posts
- 😲Tariff Panic Overblown? Yardeni Says Inflation Fears May Be Exaggerated
😲Tariff Panic Overblown? Yardeni Says Inflation Fears May Be Exaggerated
Plus, a stock that should be on your watchlist, and more
Happy Wednesday! A surprising new theory from a prominent economist suggests President Trump’s tariffs may not ignite inflation after all, and everyone should be paying attention to this instead. Also, discover this week’s Under The Radar pick!
— Justin Giles
Plus, if you’re interested in capitalizing on growth in the aesthetic medical market, check out today’s sponsor.
MARKET RECAP
Yesterday: U.S. markets closed lower on Tuesday, snapping a two-day winning streak as ongoing tariff uncertainty weighed on sentiment. With Tuesday’s drop, the Dow Jones Industrial Average is down 5% on the year, the S&P 500 is off 8%, and the Nasdaq has fallen 13%. The VIX, Wall Street's "fear gauge," dropped to 30 after spiking to nearly 60 last week.
On the upside, valuations have returned to historical norms, potentially setting the stage for a market bottom. Meanwhile, Q1 earnings results have been strong so far with banks beating expectations on the back of higher trading revenue, however, forward guidance remains soft amid ongoing trade tensions.
On Our Radar: Analysts will turn their attention towards the home builder confidence index — due later this morning — as well as remarks from Jerome Powell. On the earnings front, American Express, Charles Schwab and UnitedHealth headline a slate of companies to report results before Thursday’s opening bell.
TOP STORY
As concerns mount over the potential inflationary impact of Trump’s proposed tariffs, a surprising new theory from a prominent economist suggests the economic fallout may not be as severe as anticipated. Read on to see how this could impact your investments.
SPONSORED CONTENT
Competition is heating up in the aesthetic medical market in Japan, but that didn’t stop SBC Medical Group Holdings Inc. (NASDAQ: SBC) from posting growth in full-year 2024 revenue, gross profit and net income. The company has its loyal and growing base of customers to thank.
While competition is fierce, SBC Medical expects an impending shakeup, one it can use its $125 million in cash to benefit from by purchasing high quality companies that it wouldn’t otherwise have an opportunity to buy.
Not one to rest on its laurels, the company is also looking to enter adjacent markets and roll out more services including ones geared toward its growing customer base of men. To learn more about SBC Medical Group services and successes, click here.
This is a paid ad. Please see 17b disclosure here for more information.
FIVE ZINGERS
Chip Slip: Nvidia is staring down a $5.5 billion hit from U.S. chip export restrictions to China, but top analyst Dan Ives says investors shouldn't panic just yet. Click here to see why this might be more smoke than fire.
Sky High: United Airlines' stock took flight after exceeding earnings expectations. See why investors are betting on United’s future!
Tesla Trouble: Tesla owners face a double whammy in 2025 thanks to these two things. Read on to learn more and how to protect your portfolio.
Dollar Dominance: Citigroup tops Q1 expectations — see why CEO Jane Fraser believes the U.S. will 'still be the world's leading economy and why the dollar will remain the reserve currency.
To The Moon: A leading cryptocurrency analyst predicts a potential Dogecoin bull run after a false breakout. Click here to explore what’s next for this meme coin!
SPECIAL OFFER
Editor’s Note: Every Tuesday, Benzinga Edge members receive the Under the Radar pick, detailing a very profitable stock or market trend that no one else is talking about. Here’s a sneak peek:
It takes a few years before you learn the most important words in investing (and most of life as well).
“I do not know.”
What is the market going to do over the next year?
I do not know.
How long will the trade war last?
I do not know.
As investors, we need to focus on what we can know.
What are we paying for assets owned by the business and the cash flow produced by operations?
That we can figure out quickly.
Once we know that, we can plan accordingly.
Owning what everyone else does will deliver at best average returns.
When we are in an environment like we are today where the average returns are likely to be quite low, the popular expensive stocks can deliver large doses of disappointment.
The furniture business is not at the top of anyone’s excitement list.
There is no one on CNBC or on the internet touting the exciting opportunity in couches and dining room tables.
As a result, the shares of this company trade at less than 8 times cash and yield over 5%.
The company has been generous about sharing wealth and has grown the payout by about 15% annually over the past several years.
No one is expecting much from the company, and any positive news could send the stock higher quickly.
No one knows what will happen next.
We do know that there will probably be surprises and events we never saw coming.
Doing what everyone else does sets the stage for negative surprises.
I prefer positive ones.
Get all the details from yesterday’s Benzinga Edge-exclusive Under the Radar report. Click here to access it now.
SPONSORED CONTENT
Don’t miss Benzinga’s must-attend virtual forum on the rapidly evolving ETF market! Join us on June 5th at 10 am ET to explore the latest trends in crypto ETFs, thematic ETFs and innovative structures. Gain valuable insights into strategies reshaping how financial advisors guide clients and how retail investors adjust their portfolios.
BEFORE YOU GO
Were you forwarded this email? Click here to subscribe.
And be sure to check out our other newsletters:
Future Finance: Where fintech, crypto and the future of finance collide. Future Finance is a perfect lunch read packed with quick bites for industry enthusiasts. Subscribe here.
Cannabis Daily: A must-read daily briefing for cannabis investors, operators and enthusiasts. Join our list of industry veterans to jump start your morning. Subscribe here.
Advisor: Tailor-made for Financial Advisors, this weekly newsletter has industry-specific insights, analysis and news. Subscribe here.
Tech Trends: Get the inside scoop on AI, the hottest gadgets and mind-blowing tech trends. Subscribe here.