Market Mayhem
The stock market sell-off that began after the S&P 500 Index hit an all-time high in mid-February picked up steam following Trump’s Liberation Day press conference on Wednesday afternoon.
Stocks actually drifted up before the event as investors anticipated a moderate tariff package. Instead, Trump unveiled an aggressive tariff plan that relies on a concept of reciprocal tariffs that will vary from country to country based on their trade deficit with the U.S.
The upshot was a much higher level of tariffs than anticipated, which sent stocks down sharply over the next two days. As of the end of trading on Friday, April 4, the S&P 500 was down approximately 17% from February peaks, while the tech-heavy NASDAQ 100 was down approximately 22%.
In this latest livestream, Trish and Rob look to make sense of the market chaos and share their thoughts on how investors should respond. They discuss:
What exactly Trump announced, why he did it, and why markets have responded so negatively
Historical precedents of market sell-offs, including the 2020 pandemic and 2008 Global Financial Crisis.
Current valuation levels on major stock market indices.
The case for tech stocks after substantial declines in earnings multiples.
Strategies for long-term investors seeking to deploy capital and take advantage of lower share prices.
Why Bitcoin has recently outperformed stocks and may offer relative resilience.
Their recent work on Strategy Convertible Preferred Stock (STRK), which offers a ~9% dividend yield with long-term upside potential linked to MSTR.
The potential for Trump to pivot and negotiate trade deals that put the market at ease.
As markets brace for another volatile week ahead, be sure to stay informed and watch this valuable discussion!
