Keep calm: selloff brings opportunity

Show notes

Last week marked the beginning of a historical market selloff. The selloff on Friday accelerated after China said that they would respond to the US tariffs with 34% tariff on American imports on their own. Europeans warned that ‘when elephants fight, grass trembles…’ to say that retaliation smells stronger than negotiation, right now. Equities and crude oil plunge, gold is also giving signs of exhaustion...
So if you’re wondering where does the capital flow? It flows to into the government bonds – the US, the German, the Japanese, the Australian yields are all down on the growing expectation that the financial turmoil will soon bring the central banks back to cutting rates and to purchasing bonds to ensure stability...
This week, the US will release its latest CPI update, but it won’t matter.
More interestingly, the US earnings season kicks off this week with the big banks due announce Q1 earnings. TSMC will also report its March sales on Thursday. Attention will be on companies’ forecasts regarding the tariff chaos, and how bad they see the future with heavily disrupted global supply chains.
Listen to find out more!