The market is on high alert as investors scramble to respond to President Donald Trump’s latest tariffs, which are set to take effect on April 2. The Dow Jones Industrial Average fell 715.80 points, or 1.69%, last week, while the S&P 500 shed 1.97% and the Nasdaq sank 2.7%. Goldman Sachs analysts warn that the US economy faces a sharply higher risk of recession over the next 12 months due to tariffs reducing growth, stoking inflation, and deepening market decline.
Trump’s tariffs are expected to have a significant impact on foreign automakers, with the president saying he hopes they raise their prices. However, this could lead to increased demand for American-made cars. Veteran trader Stephen Guilfoyle sees a military aspect to the market turmoil, likening it to a tornado, but also believes there may be a buying opportunity on the other side.
Guilfoyle advises investors to narrow their book, ensure cash levels are elevated, and understand the situation before making any moves. He emphasizes the importance of identifying opportunities for investment rather than simply trading with fear. With reduced taxes and a deregulated corporate environment part of Trump’s plan, investors should mark April 2 as Liberation Day and be prepared to adapt to changing market conditions.
As markets struggle to find clarity on the impact of tariffs, Guilfoyle warns that panic may still be in the air, but also believes there could be a rainbow beyond the storm. With a clear plan and reduced taxes on the horizon, investors should be prepared to carry on and navigate the complex market landscape ahead.
Source: https://www.thestreet.com/economy/veteran-trader-gears-up-for-the-next-market-ride-guilfoyle