Markets are focused on 'Goldilocks' scenario amid new Trump tariffs: PCM's Garcia

Market Sentiment & Tariffs - The market isn't reacting strongly to tariff announcements, possibly due to uncertainty about implementation and impact [1][2] - The market may be pricing in a "Goldilocks" scenario with interest rate cuts and continued growth [9] - The market seems to believe tariff deadlines will continue to be pushed back [7][8] - Most tariff concerns are focused on China, with other tariffs considered less impactful [12] Earnings & AI - If earnings grow 10% in the next two years, the stock market is expected to rise significantly [11] - AI investments from the previous two years are expected to yield efficiencies, revenue possibilities, and cost cutting [11][12] - A potential step change in earnings is anticipated in 2026 and 2027 [13] Investment Strategy - Buying stocks when the president suggests has been a successful strategy in the first half of the year [14] - The second quarter saw success in buying low-quality, hyper-growth stocks [15] - The market is placing bets based on past experiences with similar situations [16] - The market is trading at 223% times forward, indicating a level of complacency [5]