Posted on 03/10/2025 8:38:02 PM PDT by bitt
Wall Street is puking big time, and the sell buttons are working overtime whenever the word “tariff” passes from Donald Trump’s lips. If you listen to the fat cat community long enough, you’d think Trump has been in office four years rather than four weeks, and that a small trade surcharge on a car from Mexico is leading us into economic Armageddon.
I’m no fan of tariffs for lots of reasons, including I hate paying too much for stuff, but I’ve also taken enough econ and studied markets long enough to know that they’re not the end of the world as we know it. I also know that the Trump economic plan is much more than tariffs; it’s about tax cuts, deleveraging the federal government’s involvement in the private sector and allowing the private sector to thrive.
It’s about unleashing the animal spirits of the US entrepreneur through deregulation.
Yes, what Trump wants to do — and has to do given the load he was left with — was always destined to create some short-term pain for the long-term gain.
So maybe try and ignore the stock market for a bit — or take some of your gains if you’re in it. Either way, if history is any guide, the real economy that most people care about is poised to do just fine given what Trump is planning, and eventually, so will the stock market.
Think of the current US economy as a junkie weaning himself off heroin, which is never easy. It’s been addicted to the heroin of government spending — both monetary and fiscal — for so long that we are running $2 trillion deficits when the economy is growing near 3% with low unemployment as sleepy Joe Biden spent money we didn’t have.
(Excerpt) Read more at nypost.com ...
P
In Trump We Trust (after God, of course).
Anyone paying attention knew we were going to go through pain as Trump fixed our country. This is totally expected and needed.
At a point when one thinks it has hit bottom, it is a buying opportunity.
Wait for the bounce first.
But watch out for the dead cat bounce.
“Anyone paying attention knew we were going to go through pain as Trump fixed our country. This is totally expected and needed.”
Hard to feel sorry for anyone holding stocks while the Dow is above 40,000.
I moved everything out of stocks in my 401K.
“At a point when one thinks it has hit bottom, it is a buying opportunity.”
indeed ... if one has a long term investment horizon, has been paying close attention to quality companies and essential sectors, has cash, and has been waiting for a big downturn to pull the trigger, then invest in any babies being thrown out with the bathwater ...
buy low and self high of course ... but to do that means to buck the conventional wisdom, and that’s very difficult to do psychologically for those of modest means who can’t afford to lose too much of their hard earned savings ...
“I moved everything out of stocks in my 401K.”
I did before the 2008 as it was obvious that housing was going to crash. But I never went back, so missed the upswing...but glad I don’t have to deal with what’s coming now!
Ya, I made out on the upswing, as the election got close I moved it all out. It was obvious no matter who won the market was going to be wrecked, either total collapse or a hard core correction.
IMHO - there’s also those that have no problem with the entire country tanking if it means ‘defeating’ Trump.
This is war.
That said, in January I moved most of my retirement out of stocks....based on the general idea that markets don’t like turbulence and uncertainty.
Anyone paying attention knew we were going to go through pain as Trump fixed our country. This is totally expected and needed.
*****
Exactly.
We went Gault when Josef stolen stole the election in 2020. We moved everything in our retirement portfolio into tax free bonds.
OlenI refused to pay tax to Bidog’s administration.
Can’t blame Trump. This started long ago early last year.
Ari Fleischer
@AriFleischer
For everyone going crazy about the stock market, the Dow is down 1.1% for the year and the S&P 500 is down 4.3%.
If you can’t handle what’s tantamount to a small swing, you shouldn’t be in the market.
Trump and Musk need to focus on the long term. No need to be deterred by short term market movements.
The only things going up are gold..silver..brass..and lead.
I just hope that traders and investors don’t start short-selling and borrowing money to buy on the dip or correction. I’ve never heard about that being a good thing overall.
investors are in process of repositioning for a diffeent economic landscape - selling this, buying that. in the meantime, little noticed: interest rates on bellweather 10yrTsy have declined from 4.9 to 4.2%. oil futures have declined from $80 to $67. meaningful and stimulants for economic activity. promises made, promises kept - and significant ones, at that.
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