Optimism on tariffs and still-strong economic data are supporting equity markets but much depends on whether tariffs stay “higher for longer”.

April saw Q1 Real GDP slightly shrink and the so-called fear index temporarily spike. The U.S. dollar dropped, boosting returns for non-U.S. equities, and fixed income markets saw mixed performance.

Earlier this month, the announcement of unexpectedly high tariffs triggered market declines and renewed investor questions about the outlook for the U.S. economy. To explore these themes, Pathstone recently hosted a private client event featuring senior leaders and a policy strategist known for his expertise at the intersection of financial markets and government action. While the full conversation remains exclusive to Pathstone clients, we’re sharing below a few key themes from the discussion that can help contextualize the shifting trade landscape and the broader implications for portfolio positioning.

The following summary is a synthesis of the discussion and market observations and is not a direct transcript or attribution of any individual speaker.