Mui: There may be some nasty surprises that pressure the market

Market Trends & Geopolitical Tensions - Geopolitical tensions are weighing on the markets, potentially causing a pause or reversal in the US market rally [1][2] - Rising oil prices are not good news for US inflation [2] - The working assumption is that tariffs will remain at 10%, but there could be surprises causing downside market pressure [3][4] - Possibility of a "taco trade" scenario, suggesting potential for policy shifts [4][5] Investment Opportunities - Defense is an area where many governments, especially in Europe, are increasing spending, presenting a secular trend [6] - Increased defense spending has positive implications for the wider European industrial sector, particularly for countries like Germany [7]