Tariffs, Market Rout Change Stock Odds

The new reality is that Trumpanomics & recent market rout “shatters [individuals’ and their advisors’]  long-held beliefs on investing aka waiting out market dips & waiting for the market bump. Even the Fed isn’t so sure about what to do to calm markets in this latest “moment of crisis.”

As the WSJ coverage candidly assessed today’s investment strategy and conventional wisdom: Trump’s unpredictable tariff policy is “testing the habit of staying invested no matter how rocky markets get.” In fact, it concludes without concluding: “President Trump’s tariff mania is rewriting the investing playbook.”  Indeed, we’re told “Americans and Wall Street pros alike have long been accustomed to a steady ascent in US stocks. Wading in to buy declines always seemed to pay off, often almost immediately. Moments of crises were met with a vigorous response from the US government, ready to unleash stimulus and step in to calm markets.”

Not so much any longer. So, what’s really changed? That government intervention aka “Fed put” isn’t happening this time around since the “turmoil is being caused by the government” and its desire to use tariffs (and other policies) to REWRITE the old economic rule book and its love affair with a global economy. And, along with it, say the experts, goes the growing fear of a serious recession that could be global in scope. If so, can a hard-working person afford to gamble on a sure thing that’s no longer a sure thing?

Davd Soul