President Trump heads to Davos.

From Marketplace, I'm Nancy Marshall Genser in for David Bonaccio.

First, Larry Adam joins us to talk housing and tariffs.

He's chief investment officer at Raymond James, which is a Marketplace underwriter.

I started by asking what he expects when we get pending home sales tomorrow.

Well, I think you're going to continue to see some weakness in the housing market because we still have some affordability issues.

You know, one thing that we've been hoping for that we'd see mortgage rates come down, which has been the positive so far.

But if you look at the markets, you know, just over the last couple of days, you're starting to see interest rates start to tick higher.

So continue to think that's going to be a very slow recovery in the housing market going forward.

Pivoting to tariffs, they have contributed to costs.

I know President Trump has said consistently that foreign firms pay for tariffs.

But there's new research from a German think tank that found that only about

4% of the burden of tariffs is actually shouldered by exporters. Why do you think exporters

don't foot much of the bill? So I think if you just look broadly in the context of corporate

America, they're very resilient. And I think that they've found different ways to try and mitigate

those costs. If you look, for example, I do think that they've found different ways to try and mitigate those costs.

If you look, for example, I do think that they've switched some of their suppliers.

As you know, energy prices around the world have been cut. So that's reduced some of the

spending, if you will, when it costs to transport. I think AI has had a big part of this

in trying to reduce some costs as companies have gotten more efficient.

So I think you have to look at all of that in the context of how we really haven't seen the big boost.

Yeah, and consumers have been expecting prices to rise, but that hasn't happened that much because of tariffs.

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