Katz: Tariffs are a lose-lose game. The U.S. market will be spooked in the next few months.

Tariffs on China, Mexico, and Canada are deemed a lose-lose situation, potentially spooking the US market in the coming months. The market's recent rally is seen as unsustainable, with a more cautious approach advised due to increased market volatility and potential shifts in investor sentiment. Healthcare is highlighted as a lagging sector with a potential investment opportunity in Amgen, supported by a promising Phase 2 study for a weight-loss drug.

Tariffs & Market Outlook

• 00:00:09 Tariffs on China, Mexico, and Canada are viewed as detrimental to global trade and are causing foreign markets to sell off. The US market is currently overlooking the potential negative impact of these tariffs, but it is anticipated that the market will become spooked in the coming months. The speaker advises against chasing the recent market rally due to these concerns, as it is viewed as unsustainable in the context of global economic uncertainty.

Market Volatility & Cautious Approach

• 00:01:24 The market's recent strong performance is considered tenuous due to the current state of uncertainty. The speaker believes the market is less stable and that investor psychology could shift negatively. With volatility increasing, a more cautious approach is recommended, particularly regarding small-cap stocks which have seen a significant rally recently but are at increased risk of correction.