March is over, the pain is probably not [Video]

March is over, the pain is probably not. Global equity markets kicked off the week on a negative note ahead of the so-called Liberation Day, April 2nd, the day the Trump administration will reveal the reciprocal tariffs to the rest of the world. Based on the strategy adopted by the White House since the beginning of Trump’s second term, tomorrow’s announcement will likely by exaggerated, overdone, buzzy and nerve-wrecking to make the others fear, react and negotiate.

From here, there are many possible scenarios – obviously – but the most likely two are 1. US tariffs sound more reasonable than many fear and global indices rebound on relief until the next tantrum. Or 2. The tariffs are unreasonable – like the 200% levies that Trump threatened the European alcoholic beverage makers with – and the world is pushed into a deeper chaos. The majority of investors appear to be hedging against the second scenario: gold prices continue their journey to the north with little hesitation, the price of an ounce of gold is trading above $3140 this morning and the USDCHF resists into the 0.8850 level.