Decoding the Market: Tariffs, Tech, and Trading Tips

Fresh news and strategies for traders. SPY Trader episode #1041. Hey there, Spy Traders! It's your pal, Penny Pincher, here to guide you through the financial jungle. It's 6 am on Monday, March 24th, 2025, Pacific time, and the markets are about to open. Let's dive into what's moving the needle today. First, some quick headlines: The U.S. stock market is still in correction territory, down 10% from its peak earlier this month. While the Morningstar US Market Index did gain a bit last week, we're still looking at losses for the fourth straight week. Interestingly, global equities are doing better than us this year. The best performing sectors last week were energy and financial services, while basic materials and consumer defensives lagged. Now, the real juice. New tariff policies are causing a lot of uncertainty, which is weighing on the market. However, stocks jumped a bit when reports came out that tariffs might not be as extensive as feared. The Federal Reserve is holding steady on interest rates at 4.5% after three cuts, also slowing down quantitative tightening. From a company point, Super Micro Computer is hot due to AI demand. Tesla's been volatile, thanks to tariffs and some Cybertruck recalls. Intuitive Machines and Lucid Diagnostics are about to drop earnings, so keep an eye on them. Oh, and Musk told Tesla employees to hold onto their stock amid some protests. Okay, let's dig into some analysis. We're seeing a slowdown in U.S. economic growth. The Fed lowered its GDP forecast. They also raised their inflation projections, and unemployment is expected to creep up. Consumer sentiment is low, and small businesses are feeling uncertain. All of this adds up to an increased risk of a recession within the next year. So, what's a savvy Spy Trader to do? First, diversify, diversify, diversify! Spread your investments across different assets and geographies. Focus on companies with solid fundamentals – good balance sheets, positive cash flow, and a history of profits. Be careful with highgrowth stocks right now. Value stocks might be a safer bet. Keep a close watch on those macroeconomic indicators and company news. Always manage your risk with stoploss orders and a welldiversified portfolio. And hey, if you're feeling lost, talk to a financial advisor. Here are my recommendations. Given the market volatility, I am going to reduce exposure to growth stocks, instead adding to fundamentally strong dividend stocks. Consider trimming your positions in tech, adding to energy and financials. Monitor upcoming earnings releases from Intuitive Machines and Lucid Diagnostics for potential entry points. Remember, this is not financial advice, just my take on things. Always do your own research before making any moves. What do you call a romantic finance expert? A fund lover. Thanks for tuning in to Spy Trader! Stay safe out there, and happy trading!