Joe Rennison

Markets, investors hate uncertainty.

They can't price uncertainty.

It's impossible to price what you don't know.

Whether the economy could sustain through such a shock, whether the employment market would come under strain, whether inflation would rapidly rise.

And so you ended up with this kind of paralyzing of business and financial markets because they just didn't know what was going to happen.

Now, where we are now...

Sure, there's still a lot of uncertainty in the world, but we at least roughly know what the base rate on tariffs is going to be.

We roughly know, we at least have some data on what the income from tariffs looks like to the government.

Yeah, much higher than people were anticipating initially.

We've seen inflation not get out of control.

Yes, there's pressure on inflation, but it's not got out of control.

There's an awful lot that we've just had a little bit of time to kind of analyze, to get our head around, to a point where there is at least less uncertainty than there was six months ago.

Yeah, exactly.

Certainly some of the big causes of consternation and uncertainty have eased somewhat.

And it isn't just tariffs.

We also have the big, beautiful bill, the tax cut that went through.

It's an extension of a tax cut, but it still is a tailwind for the market.

Fed looks like it's now lowering interest rates.

Those lower interest rates will also offer a tailwind to the market.

It reduces borrowing costs.