Navigating the Tariff Tightrope

Fresh news and strategies for traders. SPY Trader episode #1047. Alright, Spy Traders, it's your pal Barry Bonds...the financial one, not the baseball one! It's 6 am on Wednesday, March 26th, 2025, and we're diving headfirst into the market. Buckle up, because it's been a wild ride. We saw a bit of a recovery yesterday, with the S&P 500 and Nasdaq both inching up, but let's not forget the S&P is still down quite a bit since January. All these tariffs and economic worries have investors on edge. Remember that in early March, U.S. stocks entered correction territory, reflecting uncertainty surrounding new Trump administration tariff policies and growing economic concerns. So, what's making headlines? Well, tariffs, tariffs, and more tariffs! The market is hanging on every word about whether President Trump is going to scale back some of them. The Fed also held interest rates steady, but they're projecting slower growth and a bit more inflation. Let's talk sectors. Tech had a decent day yesterday with Tesla showing strong gains despite some bad sales numbers in Europe. Seems like everyone is hyped about selfdriving cars and robots! Apple, Alphabet, Amazon, and Meta also saw gains. Energy and financial services sectors were top performers, while basic materials and consumer defensives lagged. Value stocks continue to outperform growth. United Parcel Service, UPS, took a hit after Bank of America lowered its earnings forecast. KB Home also dropped after a weak earnings report, citing consumer hesitation. On the flip side, Dollar Tree is popping because they might sell off Family Dollar, and GameStop, get this, GameStop is planning to put Bitcoin into their investment strategy, wild! Okay, Barry's Breakdown time. This market feels like a rollercoaster designed by a committee. We've got geopolitical risks like the RussiaUkraine war and tensions with China adding to the mix. The OECD is projecting slower GDP growth, and the Fed is bumping up inflation expectations. All this uncertainty can make you want to stuff your money under the mattress, but that's not the Barry Bonds way! Remember: What do you call a banker without a job? A branch manager without a branch. So, what's Barry recommending? First, stick to the fundamentals. Focus on solid companies with good valuations. Value stocks might be a good bet right now. Smallcap stocks may be trading at a discount. Spread your eggs around – diversify! European stocks are looking interesting. Keep a close eye on those tariffs, they’re a huge market mover. And most importantly, remember this is a marathon, not a sprint. Don't panic sell when things get bumpy. Now, a quick disclaimer: This is just my opinion, folks. Do your own research, talk to a financial advisor, and don't blame Barry if your yacht doesn't materialize overnight. Until next time, happy trading!