Market agrees tariffs are bad for everybody, says Ariel Investments' Charles Bobrinskoy

Summary

Charles Bobrinskoy of Ariel Investments discusses the market reaction to tariff threats and argues tariffs are inflationary and bad for everybody. He sees a rotation from overvalued large-cap growth into cheaper small- and mid-cap value. He expects stubborn inflation from deficits, tariffs, less globalization, and less immigration to lift gold, oil, and quality real estate, and he favors specific cheap energy and mining names. He also comments positively on Sphere's capital-light expansion and Wizard of Oz attendance.

• Tariff threats are weighing on markets; Bobrinskoy says tariffs are inflationary and bad for everybody.
• He sees large-cap growth as overvalued and favors a rotation into small- and mid-cap value.
• Inflation is seen as stubbornly high due to deficits, tariffs, less globalization, and less immigration.
• Inflationary forces are expected to support gold, oil, and quality real estate.
• Barrick Mining is favored as a cheap gold miner with underestimated earnings power.
• Apache and Schlumberger are favored as cheap oil and gas exposure.
• Sphere is discussed positively for capital-light expansion and strong Wizard of Oz attendance.
• The Fed's 2% inflation target is viewed as difficult to achieve.