Markets experience relief rallies when uncertainty is temporarily resolved, but these rallies are often short-lived and can quickly reverse when expectations fail to materialize, as demonstrated by the unpredictable nature of the 2025 China-US tariff negotiations where initial optimism about reaching a deal was quickly replaced by disappointment when the deal did not materialize.
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Why the markets are rallying—and why you should proceed with caution.追加:
Um the markets are having a bit of a a release valve, right? There's a relief rally to the upside.
We don't know how long that's going to be taking place. And if we recall, we kind of have a model for thinking about this. If we recall back to the China-US tariff dance that happened around this time in 2025, uh it was not clear-cut, right? There was a lot of Ooh, they're going to reach a deal. They've reached a deal.
Oh, but now that they didn't actually reach a deal. Right?
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