Hello Readers,
Brendan Ryan here. You usually see Denis in these videos but I’ll explain in the video why I’m covering this week. Its been a little while since we recorded our chart blog video but we thought this week we should shed a little bit more light on who is bearing the brunt of the tariffs right now. Despite popular belief, according to Goldman Sachs, companies have shouldered the majority of the burden… so far. Watch this quick video and continue reading for more from Fireside Charts this week.
Denis should be back for the next video blog update. Enjoy the last few weeks of summer!
Thanks for being here,
Brendan Ryan, Portfolio Manager
Recent data highlights a growing divergence between headline narratives and what’s happening beneath the surface. As U.S. imports from China decline, global trade appears to be rerouting through other countries. Market breadth continues to narrow, even as major indices push higher. While tariffs are contributing to a modest pickup in goods inflation, corporations—not consumers—have absorbed most of the impact so far. Meanwhile, AI isn’t to blame for a slow job market for recent grads. Student loan delinquencies are beginning to climb again.
1. So far the rest of the world is filling the gap left by the US purchasing less Chinese goods
2. “Bad breadth” has been an overused pun for this top heavy market but dare we ask if the market is running out of breadth?
3. For years overall CPI benefitted from low to declining goods prices, but it looks like tariffs have begun to change that.
4. AI isn’t the reason for low hiring rates of recent college grads
5. So far corporations have eaten most of the tariffs
Chart Source: Goldman Sachs
6. The grace period for student loans is over:
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