For all those who are assuming that tariff is history after the US federal court ruling, do you think it is too naive to assume that?
Seth R Freeman: Well, this is going to be sent to the appeals court and could end up at the Supreme Court. And the problem with this is that this is going to create a period of uncertainty until this gets resolved further, that is really the big risk here.
So, how should our viewers look at it? I mean, there is excitement in US markets, at least US futures, the Asian markets are trading with the positive bias ever since the news that hit the wires. Do you think this is something which investors and traders should ignore?
Seth R Freeman: No, this is very significant because we can see from this that this positive sentiment about this announcement is global. It is not just in the US markets, and it shows this kind of depression that it has placed on sentiment, that the tariff wars and so forth has placed on perceptions around the globe.
So, no, I think investors have to watch this very closely. This particularly has an impact on the second half of the year in terms of business planning, logistics, imports to the United States, profits, profit margin projections, and so, this really puts a wrench into perhaps what importers and manufacturers and retailers were finally getting their arms around.
So, how do you think the dollar is going to settle in? While of course overnight you have seen an uptick coming in after the tariff set back that Trump saw. Not just that, the FOMC minutes have been highlighting uncertainty so many time in their minutes commentary. Where do you think the dollar and the yield trajectory is going to be in the next few days?
Seth R Freeman: Maybe, the yield on the long-dated bonds, treasuries will decline slightly. We are definitely seeing a big shift in the last week. So, maybe this will just provide a little sense of relief. But again, all we are doing is extending the uncertainty as opposed to being able to look into the near future and know what the terms are.
