Denial is driving the stock market higher — but tariffs will soon take their toll

1. Investors underestimate tariffs' impact on profit margins and inflation. 2. S&P 500's net profit margin was 12.8% in Q2, higher than Q1 and last year. 3. Tariffs' effects may peak in one year, impacting inflation and profit margins. 4. Inventory buildup allowed companies to temporarily sell at pre-tariff prices. 5. Third quarter margins are expected to decline as tariffs hit consumers.