Markets may be overestimating a potential “Minsky moment,” where investors lose faith in the US dollar. Although there were fears of a market collapse after tariffs, stocks, particularly the Nasdaq, have rebounded, likely due to President Trump’s reconsideration of tariff policies following pressure from major retailers. Meanwhile, developments in AI, including impressive advancements from companies like Alphabet, seem more significant than trade tensions. Predictions about a recession remain mixed, with varying estimates on likelihood. Despite concerns, foreign selling of US assets has been moderate, suggesting overreactions. The situation underscores the importance of focusing on emerging technologies like AI.
Friday charts: The Marvin Minsky moment is here
