Market rally could give some back given heightened tariff uncertainty, says F.L.Putnam's Ellen Hazen

Market Concerns & Tariff Impact - The primary concern revolves around the ultimate impact of tariff uncertainty on economic growth, both domestically and internationally [2][3][4] - Tariffs are projected to be significantly higher than last year's 25%, potentially reaching high single digits or even higher across the economy [3] - International trade may suffer as slower corporate earnings growth occurs due to decreased demand caused by tariffs [4] - The full impact of tariffs is yet to be felt, suggesting potential future headwinds for corporations [5] Economic Outlook & Inflation - The economy is currently holding up well, as evidenced by the labor market and inflation data [6][7] - Inflation numbers are expected to rise in the July and August readings, with acceleration later in the year [7] - The Federal Reserve is likely to remain on hold at the July meeting and potentially the following meeting due to uncertainty about inflation [7] Corporate Earnings - Second-quarter earnings are expected to be favorable, with anticipated growth of only 2% to 3% [8] - Third-quarter reports are expected to reveal more concerns from companies regarding coping with tariffs [8] Cryptocurrency - Crypto and Bitcoin are viewed as a play on inflation and the dollar, functioning as a currency [9] - They can serve as a hedge against inflation and dollar uncertainty, similar to gold, but lack cash flow [10] - Investing in companies like Coinbase is suggested, as they can profit regardless of Bitcoin's price fluctuations [11]