Market Commentary

Trade

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The news is all about the trade deficit and tariffs proposed or implemented by President Trump in recent weeks. However, the trade deficit fell in April to $46.2 billion from $47.2 in March. That is improvement but it is still a very large gap. A gap that has been with us for many, many years. Exports edged up mostly because of domestically produced petroleum exported from the U.S. The highest level in five years. Also more soybeans and corn were exported.

The deficit is still very high and from an economic point of view this might be the best time to try and do something about it as our economy is strong. You can argue the method but not the intent. Something has to give and the amount of tariffs on our exports to foreign countries far exceed on any tariffs we charge.

For investors it is likely to mean more volatility, but not likely to lead to a Bear market.

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