On The Dollar, The Debt & Earnings

Investors can dismiss worries that the US dollar’s weakness presages an emerging-market-style crisis. That’s impossible for the US. Foreign investors need dollars to invest in US assets, which retain their clear advantage in attracting investment capital. We attribute the recent dollar weakness to the strong euro and devaluation of high-P/E Mag-7 stocks, which foreign investors shed amid Trump Tariff Turmoil. … Also: Melissa discusses expectations for the House’s tax reconciliation package that should stop Trump 1.0’s tax cuts from expiring this year—which won’t come cheap. … And: Joe reports that tariff-related uncertainties are reflected in analysts’ estimate revisions, skewed uncharacteristically downward despite strong Q1s.