Market watchers and day traders take a deep breath. You’ve had a busy day and you’ve just worn yourselves out emotionally and possibly financially as you’ve burst with joy as the Nasdaq was up 4% but a few hours ago, all on the Wall Street Journal’s headline that Trump was thinking about drastically bringing down tariffs on China to 50% to 65% to ease tensions between the nations1. Then reality came in the form of a White House communication from Press Secretary Karoline Leavitt a few hours later that China was the one that was going to have to belly up to the bar for a deal to get done, and the market fell from those lofty expectations to settle in with a solid up-day, but perhaps not the big launchpad moment that bulls were seeking2.
Is this a page straight out of The Art of the Deal? After all, only Donald Trump could send markets into euphoria with the idea that Chinese tariffs were “only” 50 to 65% (down from 245% at one point). That’s a lot of mental ground to cover in the space of a few months for a country unused to tariff economics. Pretty clever when you think about it. Could a huge win for our country and trade deficit be in the offing soon? Or will the inconsistent communications (whether planned or planted by others) derail the potential deals and send the market further into the depths?
It’s impossible to know at this point. Those reacting to the headlines are playing with fire and should realize that there are a lot of agendas at play here. Huge Fortune 100 companies stand to lose fortunes. Standard & Poor 500 companies could find themselves poor and no longer the standard. There is undoubtedly a goal to get these companies to shift behavior and produce their goods domestically and keep the wealth produced here in America. But that threatens sacred profit margins and CEO paychecks and there is no doubt an effort being made to crush this new idea at many levels. Egos and big paychecks and the fate of all things C-Suite are at stake. After all, who wants to shake up the status quo if it’s been SO VERY good to you? Don’t those folks DESERVE their hedge mazes out back? (You know if you could build one you would).
As market participants we have to blot out the noise, turn off the television, put down the phone, our X accounts, our Instagrams, our CNBC and nightly news and choose not to give those with agendas or axes to grind the ability to scare us into making mistakes with our wealth. Don’t give them the power. Try instead, walking your dog. He’s so cute when he cocks his head to the side, don’t you think? Go make him happy. Share a drink with a loved one. They are much more fun than your phone.
We’re not trying to scold or say never pay attention to the world around you, but please do realize when the world around you is trying too hard to influence your behavior.
If you’re reading this article, then you’re a client who has put themselves in a great position to win at the game of retirement. Giving into fear or making moves that are too big in too volatile environment are the equivalent of taking an unnecessary risk in the 4th Quarter of the Super Bowl. If you are a quarterback and your team is up 2 points with 17 seconds left to play, is there any reason at all to throw the ball into the endzone? No, you are so close to winning the game. The same thing applies here.
This remains a buying opportunity for those with 5+ year time horizons for their investments. If that’s the case for you and you have money on the side earning diddly squat in the bank that’s beyond two years of expenses, then give us a call and we’ll discuss the right strategy for it. Otherwise, sometimes the best action in a time like this … is not taking one.
So go kick up your feet on your back porch, walk your dog, play cards with your favorite neighbor – do anything and everything but enable that propaganda machine on your phone and TV. But please do continue to tune in to our weekly WTA Market Report, because if you listen to us, we’ll change your financial world.
Sources
1https://www.wsj.com/politics/policy/white-house-considers-slashing-china-tariffs-to-de-escalate-trade-war-6f875d69
2https://www.cnbc.com/2025/04/22/stock-market-today-live-updates.html
