I think this is the correct take. Market is relieved Trump is not totally insane. If market tanked too much he can’t just hide in Florida golfing all day long. He can’t just ignore market signal.
Treasury yields are right back where they were before the tariffs were announced and substantially lower than they were just a few months ago. As for stocks - I would point out that in '87 the market dropped 40% in a week - the equivalent of over 15,000 points today. In '88 the economy grew 4%. In the first few months of Obama’s presidency the market fell over 20%. It closed 2009 sharply higher.
It’s not about markets having ups and downs. It’s all about Trump himself intentionally mucking things up. And the only reason we are in this situation is because of Trump. Our economy was doing great, in fact the best among peers, just two months ago.
Business uncertainty is now literally off the chart. You can’t do business in this environment.