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Click to ENLARGE. Base chart from 'Fidelity'. |
I was totally dumbfounded as to WHY the stock market, across the board, rose, quite significantly, on Monday & Tuesday of this week. Well, as I expected, there was quite the drop today. Yes, stocks were SLIGHTLY oversold at the end of last week -- but there was a good reason for that. Just because stocks were oversold doesn't mean you should buy them unless the underlying factors for their initial drop changed. They did not.
Tariffs are still supposed to kick-in, BIG TIME, on April 2, 2025.
'Trump' just added a 25% tariff on all cars not made in the U.S. -- effective as of April 2, 2025.
Yes, given it is 'Trump' this could all change before April 2 or the next day.
But, we have uncertainty. Plenty of it.
Tariffs will lead to INFLATION.
Things aren't looking GOOD for stocks -- at least in the SHORT-TERM.
That is why the RALLY on Monday & Tuesday confounded me. I kept on asking WHY ... what am I missing.
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