Investors may be the most intense tariff uncertainty even if they are prepared for new tax weighing in automatic imports and prepared for ‘salvation day’.

• Investors were forced to take into account It is clear that Trump is serious in applying important tariffs, although not a few US trade partners. Although there are many turmoils, Morgan Stanley Investment Manager Jim Caron said that traders are well equipped to map how different scenarios can affect the global economy and corporate earnings.

President Donald Trump’s 25% tariff on imported vehicles and car parts lowered automatic stocks on Thursday, but the S&P 500 and other large indices were relatively constant. Jim Caron, who is the manager of Morgan Stanley Investment Management, may be another sign that is more and more confident after passing the “most intense tariff uncertainty”, even if there is probably turmoil around the US trade policy.

Stocks increased to start the week after reports Wall Street Journal And Bloomberg He said that the administration is considering narrowing the scope of the “mutual tariffs ılan announced on April 2, which the President called the“ Liberation Day ”. Regardless of what is introduced, Caron Luck At the beginning of this week, investors were prepared to react to these developments.

“There is a difference between uncertainty and volatility, Caron said Caron, chief investment manager of the company’s portfolio solutions.

The markets despise the first as famous, because for example, it is impossible to measure whether the President’s imports are harshly about taxation as a negotiation tactic. Now, investors have been forced to take into account the fact that Trump is serious in implementing important tariffs, although not a few US trade partners.

Of course, it is impossible to determine the scope of these tariffs in advance, and to ignore which sectors will be hit the most or whether retaliation from other countries will cause a global trade war. However, merchants, how different scenarios affect the global economy and corporate earnings, he calls “managing volatility”.

“This is in the financial markets,” he said, “We are equipped to really manage and understand.”

Investors have already supervised expectations for the economy this year. Goldman Sachs recently reduced its projection from 2.4% to 1.7% for the US GDP growth.

In the case of inflation of tariffs on inflation, Caron referred to the press conference of Federal Reserve President Jerome Powell last week. The President of the Central Bank of America said that a one -time shock will result in “temporary” or temporary inflation, and that increasing price increases continue to be a threat of a chain reaction.

Trump’s tariff threats again, the dismissal nature of the S&P 500 until March 13th, because the index fell 10% from the highest level of all time in the mid -February. Tech-Ağır Nasdaq Composite decreased by 14% during this period, but both indices have been collected more than 3% since then.

Will the “American exceptional” trade continue?

Caron said that his team has dealt with the fall of the decline in both America and Europe as an opportunity to purchase. In recent years, investors have been much better than parking their money into US stocks. However, a chaotic dam of policy announcements from the Trump administration has soures in the “American exceptional” trade.

While S&P 500 2025 decreased by about 3%, while preparing to significantly increased the spending of defense and infrastructure among the fears of abandoning the USA, the stocks on the pond increased. While Pan-European Stoxx increased by 7% than 600 years, the government reached an agreement to unlock $ 1 trillion in new expenses, while the country’s DAX index increased by more than 12% in this period.

Meanwhile, the S&P China 50 index has declared increasing tensions among the world’s superpowers, although Trump has increased its tariffs in China by 20% since the beginning of its time. Optimism about China’s technology sector and AI capabilities has increased significantly since the surprise success of Deepseek’s R1. Joe Quinlan, who controls the market strategy for Bank of America and Merrill Lynch’s Service Management departments, said Wall Street’s efforts to increase the government’s efforts to increase consumer demand.

“China really came out of the financial base,” he said. “They are really aggressive about monetary policy.”

Bank of America’s Monthly Fund Manager survey found that 69% of the participants have reported the largest decline in the allocation of US equity since Bofa started the survey in 1994.

Investors are cautious while looking abroad. Stephanie link, which manages a 6 billion dollar portfolio as Hightower Advisors’s chief investment strategist Luck At the beginning of this month, he pays attention to chasing earnings in Europe, where more strict arrangements focused on profit margins.

He feels less comfortable about China and the authoritarian regime, drawing attention to the mysterious disappearance of Jack Ma, the founder of Alibaba. Before HANDS HANDS HANDS China President Xi Jinping was only open to the public after criticizing Chinese finance regulators in 2020 at an event last month.

The connection, such as Apple companies such as China to reduce exposure to the supply chains and a growing middle class will support growth, he said.

S&P 500 commerce with approximately 22 times advanced earnings, investors make sense to search for a little diversity, he said. The average of 20 years for the index was 16, in accordance with To Factset.

“I think there is American exceptionicism,” the link said at the beginning of this month, “But I think it comes at a very high price.”

At least some investors think that the tariff picture has been cleaned so little.

This story initially took part in Fortune.com