Listen: Trade war uncertainty drags on global stock markets
"One markets are losing some ground today. We are joined by Nick Raisch CEO of the earnings scout in Cleveland, Nick, welcome to the new business. Our what are you thinking about the markets watching them today? Well, we've had quite a run in US stocks really over the last six months early February. Yes. And p five hundred watts down today has rallied about twelve percent and small nose represents large cap companies small cap companies. The Russell two thousand dollars up about eighteen percent. So taking a little bit of breeder here in the markets is is probably warranted is stocks had quite a run here. And and they've had quite around because things have been superstrong when all everyone's investing in Amazon in stories like that that the small stocks were really where we should we should have been. Yeah, you hear the headlines of of the Microsoft the apples and the about the Russell two thousand is up eighteen percents in the in the smaller cap companies are are benefitting more from the tax cuts, and some of the trade war talks that you're hearing impact larger companies more than smaller companies. So they've been safe haven. Here's a play. Trade war talks of escalated throughout twenty eighteen as you take a look at the broader overall economy when you look at the fundamentals when you look at employment when you look at potential trade policy changes or given the op-ed ridden yesterday, political instability where does the risk exist today? Well, you know, there's a lot of fear. This has been a year of fear in the markets in twenty eighteen inflation fears, trade war fears, emerging market fears. The one thing we look at is the one fundamental point is how does that impact the bottom line of corporations and are those expectations for the future corporate America, getting better or worse throughout this year? They've been getting better. That's a big reason why stocks have justified we climbed higher, but some of these data points, you know, for trade wars, keep us waiting. You have interest rates rising too far too fast. It could begin to impact those expectations of just so far. Not yet. We're. Getting through second quarter earnings season here where we had the average S and P five hundred company reported nearly twenty seven percent areas growth in about ten and a half percent revenue growth. So that is so far above trend that these are strong results in if we didn't have these excessive fears of trade war talks and inflation markets would probably be up a lot higher this year, even more so than what"