How are energy investors positioned?
Investing.com -- Goldman Sachs strategist Christian Mueller-Glissmann warned that markets may be too relaxed about tariffs as investors continue to bet on a favorable economic environment.
"If uncertainty picks up on the tariffs and we start to see the first signs that in the hard data there’s some negative impacts, the market might question that Goldilocks pricing that it currently has," Mueller-Glissmann said in a Bloomberg TV interview.
The strategist expects the initial impact of tariffs to become visible during the second-quarter earnings season this month. He noted that currently, the market only anticipates tariffs affecting a small number of companies.
Mueller-Glissmann cautioned that markets might need to adjust their expectations if concerns about company profitability emerge.
"If the market has any reason to start to worry about superior profitability, even if it’s just for a few quarters, markets might have to reprice a bit," he stated.
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