The detox phase may be over but don’t expect investors to binge just yet. JPMorgan’s equity strategy team, led by Dubravko Lakos-Bujas and Bhupinder Singh, thinks the worst of tariff trauma might be easing – though the business cycle hangover still lingers.
In a market update that channels equal parts caution and calculated optimism, the duo points to a subtle but significant pivot in policy tone. “The latest messaging from the Trump Administration seems to be shifting from tariffs to tax cuts and deregulation,” they write a shift that may reduce the left tail risk that’s had investors hiding in cash and hugging their low-leverage books.
But don’t confuse hope with resolution. “Clarity and closure are still needed,” JPMorgan warns, especially as trade chatter with China heats up again. Deals with Japan, Korea and India could serve as templates, but the big dragon in the room – China – remains the key.
President Donald Trump‘s tariffs may come down, but will a complete rollback follow? Unlikely. Transshipment tricks and political posturing will keep some barriers in …