What's Next for U.S. Stocks?

Last week was action-packed in the markets.  Stocks had a sharp reversal from their recent lows when Trump abruptly backpedaled on the 25% tariffs that he had imposed on Canada and Mexico just two days earlier.  All that was required were a few modest concessions by Prime Minister Justin Trudeau and President Claudia Sheinbaum, whereupon Trump granted each country a 30-day reprieve.  We also had violent corrections in the Canadian dollar and Mexican peso as they recovered from multi-year lows when investors immediately discounted the probability of damaging tariffs hitting their respective exports to the US.  Gold continued its recent surge to multiple all-time highs, just as we anticipated in the recent write-up from January 26.  Gold is the ultimate store of value, and the astonishing amount of uncertainty in the macroeconomic backdrop is likely going to continue fueling gold’s rally higher and higher.