Tariff Drama

By most measures, the start of the first quarter of 2025 painted a picture of positive economic momentum and optimism in the U.S. Growth remained solid. Unemployment hovered near 60-year lows. Real wages were rising. Corporate earnings were on track for double-digit growth. And then it turned from optimism to uncertainty to sheer panic with the Trump administration surprising markets with a sweeping set of tariffs. By quarter’s end, the tariffs have ignited fears of global trade war, surging inflation, and a material growth slowdown. While the market volatility will continue to be painful, investors shouldn’t do anything large or rash.