Macro-to-Micro by Samantha LaDuc

Macro-to-Micro by Samantha LaDuc

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Macro-to-Micro by Samantha LaDuc
Macro-to-Micro by Samantha LaDuc
5/29+30/25 Live Trading Room Market Recap & Trades
Market Catch

5/29+30/25 Live Trading Room Market Recap & Trades

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Samantha LaDuc
May 30, 2025
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Macro-to-Micro by Samantha LaDuc
Macro-to-Micro by Samantha LaDuc
5/29+30/25 Live Trading Room Market Recap & Trades
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Trump's Rate Of Failure

Market is holding up, ignoring all bad news. The bull case is this:

  1. DOGE is D.O.A. - so no fiscal restructing. With no fiscal restraint or removal of fraud, waste & abuse - which is good for bonds but not equities - market is slow to embrace poor economic data.

  2. Fiscal Spending is all gas, no brakes - so market continues to expect Trump’s big bad bill to pass, debt to rise & resulting nominal growth to outrun inflation & rising term premium.

  3. Tariff Tapdown - so market thinks prices paid can rise slower now helping consumer spending, which helps corporate margins/guidance, economic growth.

  4. Normative Fed Cuts - so market hears Goolsbee say that “IF tariffs are avoided by a deal or otherwise, could return to a situation where rates can come down”.

  5. Nvidia ‘Beats’ - so market resumes its AI worship at the alter of Semi-Savior Jensen.

Trade deals, however, will be harder to come by - as was the promised Peace deal between Russia and Ukraine, which makes it questionable whether Tax deals will be so easy to secure with a new debt ceiling given Trump’s rate of failure.

Trump tried to bypass the Constitution & Congress.

The legal theory behind Trump’s Liberation Day tariffs ... is that there was/is an “unusual and extraordinary threat” (trade deficits), so the president can declare that all US trade with every country is a national emergency.

Matt Levine April 7th:

"The idea seems to be that every trade policy of every country in the world, over the past several decades, constitutes an “unusual and extraordinary threat.” This is a strange way to use words! How can every instance of trade with every country be unusual? How, after decades of trade deficits, is a trade deficit extraordinary?"

Granted, Trump has other levers he can pull.

Here is Goldman after Federal court shuts down tariffs via IEEPA.

And a good thread on next steps & impact by Diane Swonk.

“the fate of the economy remains precarious even if we avert a recession.”

Looking forward: Now Trump & Bessent hope to push through their BIG BAD BILL to increase spending & debt ceiling with potentially less offsetting revenue & falling political power - both here & abroad.

I know the saying, “Don’t bet against America,” but it needs to be book-ended with “Don’t bet against China.”

At the core, beyond the On/Off Tariff drama, Trump is compounding his already big errors on trade policy. The market just doesn’t see it yet.

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