(Investorideas.com
Newswire) a go-to platform for big investing ideas, including AI and
tech stocks issues market commentary from deVere Group.
President Trump’s signature economic agenda, his tariff
regime, appears to be visibly crumbling, yet financial markets are
poised to rally through the debris, asserts the CEO of global
financial advisory giant deVere Group.
The assessment from Nigel Green comes after the US Supreme Court
determined on Friday that President Donald Trump overstepped his
legal authority in rolling out sweeping global tariffs without
congressional approval, handing the White House a major setback on a
policy that has defined his economic agenda, and to a lesser degree
foreign strategy since returning to office in January 2025.
Nigel Green says: “This ruling strikes at the core of the
administration’s economic doctrine.
“Trade confrontation was positioned as the engine of renewed
domestic strength.
“Instead, it now faces constitutional limits, market scrutiny,
and diminishing economic returns.”
He continues: “Tariffs were sold as a lever to rebalance trade
and protect US industry. In practice, they have functioned as a tax
on importers, many of whom passed costs directly to consumers.
“Corporate margins have tightened in sectors reliant on global
supply chains, and investment decisions have been delayed amid
policy uncertainty.”
Recent economic data underscore the fragility of the current
environment. Growth has moderated from last year’s pace, while
inflation measures have shown renewed firmness in categories exposed
to higher import costs.
Wage growth remains solid, yet household purchasing power is
constrained by elevated prices in services and goods.
The deVere CEO explains: “The economy’s not collapsing,
but it’s losing velocity. Inflation remains persistent enough
to limit policy flexibility, and business confidence is sensitive to
abrupt regulatory and trade shifts.
“Today’s Supreme Court’s decision injects a new
variable into that equation.”
Despite the political blow, he argues markets are unlikely to
respond with sustained panic.
“Investors differentiate between political theatre and
earnings power. Equity markets are forward-looking, and they are
being supported by strong balance sheets in major US corporations,
continued capital expenditure in AI and tech, and expectations that
policymakers will ultimately avoid extreme outcomes.”
He adds: “Large-cap equities, particularly in AI
infrastructure, semiconductors, and cloud computing, continue to
attract global capital.
“Even if tariff authority is curtailed, the structural
investment cycle in advanced computing and automation remains
intact.”
Bond markets, however, may react with greater nuance.
“If tariffs are rolled back or diluted, some inflationary
pressure tied to import costs could ease over time, which may
support the longer end of the Treasury curve. Yet persistent fiscal
deficits and firm wage growth can also be expected to keep upward
pressure on yields.”
Currency markets face competing forces.
“The US dollar could experience bouts of volatility. Reduced
trade tension may support global risk appetite, tempering safe-haven
flows into the dollar.”
He cautions against simplistic conclusions. “A judicial
setback does not automatically reverse the economic trajectory.
Implementation timelines, potential legislative responses, and
geopolitical reactions all matter.
“Markets will price in probabilities.”
Corporate America, he observes, is likely to adapt quickly.
“Many multinationals have already diversified supply chains
and restructured sourcing strategies in anticipation of prolonged
trade friction.
A recalibration of tariff authority may ease cost pressures
incrementally, but strategic shifts made over the past year will not
be undone overnight.”
Nigel Green concludes: “President Trump’s tariff-driven
strategy is under clear strain following this ruling.
“The legal boundary has been reinforced, and the economic case
for broad-based trade barriers has weakened.
Yet financial markets are pragmatic. If the result is greater
clarity, reduced policy unpredictability, and sustained investment
in AI and tech, equities can advance even as the political narrative
fractures.”
“Investors should expect volatility around policy
announcements and court developments, firmer scrutiny of fiscal
sustainability, and selective strength in sectors with durable
earnings growth.”Research AI and tech stocks at
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