First of all, research analyst Nicholas Colas agrees with what we preach here incessantly. Which is, aside from the noise and the volatility it can bring, it's general conditions that count:
"That U.S. stocks recovered [Wednesday] is a good reminder that 2018 is not 1974," Colas wrote.
"Back then, oil prices had just risen 4x and the global system of fixed exchange rates was imploding" as former President Richard Nixon resigned under the threat of impeachment, he said. "Now, rates are low, the dollar is strong and corporate earnings remain robust. Those are the only things stock prices can (and should) actually discount."I will say, however, that what appears to be noise will become a painful reality if indeed the trade war persists for too long. Here's strategist Kate Warne on what remains the noise:
"I think there's disappointment that the tariffs came into effect today," said Kate Warne, investment strategist at Edward Jones. "Given the restart of the talks, there was some hope that those would be delayed."