Part 3/8:
The conversation inevitably turned to tariffs, which Lee acknowledged as a significant but manageable factor influencing market dynamics. He explained that prior to February, investors generally anticipated a 15% tariff rate, but that a revised 10% is unlikely to cause severe damage to the economy. Lee compared the potential economic impact of tariffs to fluctuations in oil prices, asserting that the consequences of a 10% tariff on imports equate to a minimal 1% reduction in GDP—comparable to oil prices shifting from $40 to $80.
Lee emphasized that while tariffs require adjustment, they are not likely to derail a climb to 4,000 on the S&P index.