MARKET CALL: Beware The Front Cover Curse & Trump Tariffs 2.0

We are sure that Forbes magazine has had plenty of cover stories about successful entrepreneurs who survived the front-cover curse and remained successful. However, the magazine has also featured a few rising stars who subsequently crashed and burned. The latest Forbes front cover features Michael Saylor of Microstrategy and is titled "The Bitcoin Alchemist." It's not a ringing endorsement. In any event: We have been warned. 

The markets certainly didn't give a ringing endorsement to Trump 2.0 tariffs announced on Friday: 25% each on Canada and Mexico and 10% on China. During his presidential campaign, Trump talked about 60% on China. Stocks sold off in the afternoon. Bond yields didn't budge much. The dollar strengthened a bit. Gold and bitcoin prices remained steady near their recent record highs. The Canadian dollar and Mexican peso weakened (chart).