Page menu

Monday, April 7, 2025

The Trump Trade War Officially Kicks Off with a BOOM! Stocks NOT to own!

Last week the Trump Tariff wars kicked off with a boom, and I believe this is just the beginning of the end for global markets, BUT this is spring, and Passover is only a week away, and that means volatility is going to sink like a stone... and you should know what that is going to mean for stocks! 

Money must be put to work, and now that many investors have been shaken out, that is what I'm expecting to see over the next several weeks, as I predicted in my recent blog, is it going to be different this time.

I still say we're going to see the same dash for trash (stock) we see every spring, and I have my shopping list ready. You'll have to do your own due diligence.

Don't miss the boat as the fools at CNBC would like you to remain on the sidelines. 

It infuriates me to see the  same people who encouraged you to buy stocks at a double top several weeks ago, tell you to stay on the sidelines when stocks are on sale. The teleprompter readers are not your friends.  


Are we in a "bear market"?     

 I don't know if we're in a bear market or not; I suspect we are... but counter--trend rallies can be explosive, and earnings season is just about to kick off! 

Stocks to steer clear of

 In my previous blog I pointed out which stocks were pumped and dumped ahead of the Tariff tantrums. Stocks such as Tesla - driven to the moon and back, purely for headline effect. These are the high fliers; the so-called Mag7 stocks.I believe we're going to see the same leadership, because there is no other bullish story than the AI story. 

We could also see Energy lead, if investors believe we're headed for a recession. 

Rest of World

European Equities and Asia were pumped to new recent highs, before being dumped, and I believe the pain is far from over.  

China & Europe

 I wouldn't even bank at HSBC, let alone invest in it. 

China is down -13% overnight, and that is a market crash. 

 

 These are the same US traded Chinese equities, CNBC fast money traders have been encouraging retail investors to pile into for the past several months. 

Thankfully US markets have "Circuit Breakers" (curbs) in place to prevent such market crashes, and a plunge protection team, who is called into repair broken markets on a regular basis, not to mention a Federal Reserve who constantly steps in to bail out Wall Street. 

Wars including trade wars can be great for stocks. Just look at how Israel - after the initial sell-off - has rallied to new highs, over the past year, even after an S&P downgrade. 

Chart the $TA125 (Tel Aviv) for yourself

"How is this possible, you may ask? There's a lot you have not been told about the Israel Gaza war, just as there is a lot you're not being told about tariff wars.  

Tariff Tantrums are likely about to come to an abrupt end, as more countries capitulate. 

 

Vietnam Offers to Drop U.S. Tariffs to Zero. Will That Be Enough for Trump?

 

Take Care, AA


Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)