Tarrif wars are common. It happened even the last time when Trump was in office.
But what’s uncommon is the scale of tarrifs announced this time.
USA is now going on economic war front with each and every country of the world.
This I think has never happened in history of mankind. And that’s what exactly spooking the markets.
You can be at war on 1, 2 or let’s say 3 fronts. But not all fronts. That’s Art Of War 101. But USA overshot and decided to go on war with everyone.
And that’s not a good strategy if you may ask me.
It’s like stretching the elastic the max you can. Eventually it breaks down. Will that be the case of USA?
Will these exaggerated tarrifs lead to the downfall of the USA? Well… Wall Street thinks so. Now whether it’s right or wrong in thinking so, only time will tell.
A lot of things are going to change. For sure.
But that’s not the end of the world.
The baton would just be passed from USA to China & later to India. Who knows. Just like it did from Bharat to Britain to America in past 500 years.
The show goes on. Don’t get scared. Enjoy the show. Markets are here to stay. I’ll continue to buy in multiple tranches in next week & weeks to come.
Remember, the show must go on!
