Happy Father’s Day to all the amazing dads out there!
It seems that the April showers we all endured this year did, in fact, bring May flowers. We were hopeful at the start of May that we were beginning to see some positive momentum in the market. Fortunately, that upward trajectory continued throughout the month. The major indices are positive for the year and there has been some forward movement regarding tariff negotiations.
We believe volatility will continue to be tied closely to every news cycle at the moment, but our long-standing, disciplined approach, along with patience, will be rewarded in the long run. As such, there are still many variables that we are keeping a close eye on.
Below you will find some articles that help explain the shifts we are seeing in inflation, tariffs, and the broader economy.
"Conventional wisdom was that the tariffs imposed by the Trump Administration would cause higher inflation and slower growth – stagflation as far as the eye could see. But this past week brought economic news that defied this prediction."
"Despite low expectations for the U.S.-China meeting in Geneva, both countries agreed to temporarily cut tariffs. The tariff on Chinese imports to the U.S. now stands at 41% (10% 'reciprocal' + 20% 'fentanyl' + 11% starting point) and 27.5% for U.S. imports to China (10% retaliatory tariff + 17.5% starting point), with sector adjustments and exemptions still in place. China also agreed to remove all export bans. This led to a surge in U.S. and Chinese stocks (MSCI China), which rose by 3.3% and 2.8%, respectfully, on Monday."
"As a quick aside, while panic-stricken, politically-motivated attacks are nothing new, the fear generated by 'end-of-the-world-as-we-know-it' forecasts since 2008 have reached a frenzy. Investors would be better served by staying level-headed."
"In this week’s Three on Thursday, we take a closer look at the evolving role of tariffs in U.S. economic policy. After decades of relative decline, customs duties have reemerged as both a revenue source and a policy lever amid rising geopolitical tensions and shifting trade alliances."
"Field of Honor® is about bringing people together to show their patriotism and pride in what makes America great and to experience something positive and meaningful. It is about uniting communities and educating our youth, raising public awareness, and showing gratitude to our military, veterans, and first responders, including K-9 and equine Heroes. The sacrifices endured by these selfless Heroes to safeguard our way of life and communities are immeasurable."
Purus was honored to participate as a sponsor of an individual flag to honor our military members, veterans, and first responders. We also had the privilege of attending the heartfelt opening ceremonies for the Field of Honor® at the Mission. Proceeds from the Field of Honor® go to benefit Homefront America's programs for military families.
Sending love to all the incredible dads out there this Father's Day and every day!
