If you feel like it’s hard to keep up with the global markets—tariffs, treasuries, trade tensions, and more—you’re not alone. It seems that depending on the day, things can change by the hour in this dynamic environment. This past week, markets continued to experience declines, but Wednesday brought one of the best days in history for market gains. This underscores what we always emphasize to our clients: markets can handle good news, and they can handle bad news, but they do not like uncertainty. The 90-day pause on tariffs has provided a temporary sense of stability for many countries.
This past week, the bond market witnessed a sharp sell-off in U.S. Treasury bonds, leading to a significant spike in yields. The 30-year Treasury yield surged to levels not seen in decades, marking its largest weekly increase since 1982. Several factors appear to have contributed to this development, including heightened concerns over inflation, geopolitical tensions, and foreign bond sales. Reports suggest that foreign investors, including Canada, may have reduced their holdings of U.S. Treasuries. As basic economic principles dictate, an oversupply of bonds leads to falling prices and rising yields. This dynamic poses challenges for the U.S., which relies heavily on Treasury purchases to fund its deficit and social programs.
Trade tensions between the U.S. and China intensified this week. President Trump imposed a 145% tariff on Chinese imports, and China retaliated with a 125% tariff on all U.S. goods, effective April 12. American consumers are beginning to see “tariff surcharges” on receipts as companies pass on increased import costs. The trade war has also caused chaos at European ports, with redirected goods from Asia stuck awaiting entry, leading to supply chain disruptions.
Spring is trying to make its way in after a long, cold winter. With market and geopolitical uncertainty adding to the gloom, you might enjoy our included article on simple exercises to boost your mood.
Many surveys suggest that couples find financial discussions challenging, often leading to disagreements. We’ve included an article with expert tips and conversation starters to help you approach these necessary talks calmly and confidently.
For golf enthusiasts, the Masters Tournament is a highlight of the year. This article shares the story of a family who rents out their home during Masters week, earning enough to pay their mortgage for the entire year.
As we head into the Easter weekend, we’re blessed with a short week in the markets. We hope you enjoy some relaxing and quality time with your loved ones. Check out this article about smart inheritance planning.
Have a wonderful week!
