Take the Tarot IQ Test

I have to admit. That was some next-level clickbait.

Here’s the test:

Q: Using the chart below, determine if the change in Average U.S. Tariff Rate will have an affect on the S&P 500. (Y/N)

Chart 1: Average U.S. Tariff Rates v. S&P 500

Source: Bloomberg. Note: Author has estimated the current tariff rate to be 25 percent, when it is likely at least 10+ percent higher.

In Chart 1, above, the Average U.S. Tariff Rate on other countries (solid white line) is plotted against the S&P 500 Index (orange line). The white dashed line shows the last time tariff rates were this high - 1905.

For extra credit, show your work.