July 9 deadline approaching may be another good entry opportunity for US stocks? Most investors are betting that "buying on dips" will still be effective.

The latest Markets Pulse survey shows that even as the deadline for the US trade agreement approaches this month and puts pressure on the stock market, bargain-hunting investors are still ready to buy. Nearly two-thirds of the 168 respondents indicated that the "buy on the dip" strategy remains profitable after the July 9 deadline set by the Trump administration to reinstate so-called reciprocal tariffs, as over half of the survey participants believe that Trump is likely to delay the imposition of tariffs again. On April 2, Trump declared a so-called "Liberation Day," imposing at least 10% tariffs on all trading partners and higher tariffs on around 60 countries with large trade surpluses with the US. The higher tariffs were set to take effect on April 9 but were suspended after only 13 hours to allow countries to negotiate agreements. As the deadline approaches, while Trump insists he has no intention of further extensions, investors seem to be preparing for a moderate outcome in global trade. This confidence partly stems from the rebound of the S&P 500 index by 25% and reaching historical highs following the reversal of tariffs policy. Jay Hatfield, CEO of Infrastructure Capital Management, said, "I think it's going to be a 'melting pot' - some countries will reach agreements, and some will fall into panic." He added, "These tariff issues have been blown out of proportion, and if the final rate is 16-17%, we don't think it will have a substantial impact." However, 73% of the respondents stated that if the tariffs announced in early April were reinstated, the US economy would enter into a recession. In this scenario, about one-third of the participants said they would significantly reduce their global equity exposure, while another third said they would maintain their current investments. Michael O'Rourke, Chief Market Strategist at JonesTrading LLC, advised investors to remain cautious before bottom fishing next week. He stated, "The S&P 500 is trading near all-time highs, valuations are rich, and there are signs of an economic slowdown. In this environment, the index is susceptible to significant corrections." As the S&P 500 index reaches high levels, its high valuation becomes a focus of the market once again. Data shows that the current price-to-earnings ratio of the S&P 500 index is 22 times the expected earnings for the next 12 months, 36% higher than the 10-year average. While market observers often warn that valuation is not a precise market-timing tool, in an environment of poor corporate earnings, stock prices have risen far ahead of fundamentals, especially as corporate executives face rapidly changing tariff policies and difficulties in formulating clear plans at present. This week, Trump announced a trade agreement with Vietnam, imposing a 20% tariff on exports from the country. At the same time, he threatened to impose tariffs as high as 35% on Japan and said, "I'm not sure if we will reach an agreement with the world's third-largest economy." Julian Emanuel, Chief Equity and Quantitative Strategist at Evercore ISI, stated, "While related news may bring volatility, we believe it will ultimately be another buying opportunity in the AI-driven structural bull market. We prefer to use option strategies." Additionally, when asked which asset class, stocks or US bonds, would provide better risk-adjusted returns in the next month, 56% of the respondents chose US bonds. Meanwhile, the market remains pessimistic about the US dollar, with 72% of the respondents expecting the Bloomberg US Dollar Index to fall during the same period.