It’s been weeks since President
Donald Trump declared Liberation Day and instituted tariffs to bring
nations to the negotiating table. This triggered a market reset that was
bound to happen since Biden-era spending levels were ending.
The political class and the elites have tried to induce a panic
sell-off to scare people away from Trump’s agenda. It failed. It didn’t
cause Trump voters to regret their vote. The media jumped for glee at
the thought of a recession. They said April would be the worst market
month since 1932. Except they were wrong, and they were wrong about the
tariffs (via Politico):
Prices
climbed at an unexpectedly slow pace last month, offering a boost to
President Donald Trump, whose aggressive trade policies have sparked
fears of a resurgence in inflation.
The Labor Department on
Tuesday reported that prices rose at an annual rate of 2.3 percent, the
smallest increase since early 2021. While price growth in so-called core
sectors of the economy — which exclude volatile food and energy costs —
remained elevated at 2.8 percent, April’s Consumer Price Index
contained only scant evidence that Trump’s tariffs have meaningfully
driven up the cost of living.
[…]
Even though tariff rates
have fallen since the administration negotiated a temporary détente
with China, Fed Governor Adriana Kugler said Monday that the
administration’s new taxes on imports are still “pretty high” and that
she expects inflation to rise and growth to slow soon.
So far, that hasn’t happened.
Few
economists had expected that overall inflation surged last month. But
there was broad anticipation that Trump’s levies on Chinese imports,
steel and aluminum and certain Canadian and Mexican products had caused
prices for apparel, electronics and other consumer goods to spike. If
anything, the opposite occurred: The cost of clothing and new cars — two
areas that were highly exposed to Trump’s initial levies — both fell.
They’re just wrong about everything, aren’t they? Suck it. That
Politico headline was delicious to read, but there’s more good news: the
recession prediction by JPMorgan has been canceled.
RECESSION CANCELLED?
The odds of a US recession this year have fallen to just 39%.
What about inflation again, CNN?
The
market has rebounded, and then some—the slight dip in April is old
news. We have nine consecutive days of market gains, which has only
happened 31 times in 97 years.
— Cabot Phillips (@cabot_phillips) May 13, 2025
Egg
prices, which Democrats laughably weaponized against Trump, dropped
12.7 percent in April, the largest dip since 1984. We got a new trade
deal with the United Kingdom and a new trade reset with China.
BREAKING: Egg prices fell 12.7% in April — the biggest drop since 1984.
— Leading Report (@LeadingReport) May 13, 2025
Every
major anti-Trump narrative on the economy has imploded, and almost
everything that’s happened was dismissed as fantasy by Democrats and the
experts who will likely eat buckshot again.
You people are just wrong—it sucks to suck.
On April 4, Jim Cramer warned of a 1987 "Black Monday" style market crash.
Since that comment just over a month ago, the S&P 500 is up over 16%.
If you sold on April 4, you missed out on some of the greatest 1-month gains ever.
Here are some returns from individual stocks… pic.twitter.com/NsQJGbfRgq
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