In a recent analysis, various scenarios were evaluated regarding economic impacts. Scenario 1 suggests tariffs may slow the U.S. economy but avoid a recession, supported by short-term optimism for stocks due to rate cuts and fiscal stimulus. Conversely, Scenario 2 predicts a global recession led by tariffs, favoring U.S. and European government bonds. Understanding these possibilities is crucial for investors aiming to navigate a dynamic financial landscape effectively. Preparing for different outcomes will strengthen your investment strategy.