Money, Tariffs, and Trades

Fresh news and strategies for traders. SPY Trader episode #1001. Alright, welcome back to Spy Trader, the only financial podcast brave enough to tell you what's really going on with your money! It's 5:00 PM on March 5th, 2025, and your host, the Sultan of Savings, the Mahatma of Money, Barry Bonds Jr. (no relation to the other Barry Bonds, I just like hitting home runs with my investments) is here to break down what you need to know. First up, the big picture: The market's bouncing back today after a rough couple of days. We saw the Dow, S&P 500, and Nasdaq all close sharply higher. The Dow and S&P each gained 1.1%, and the Nasdaq jumped 1.5%. Remember those losses? That was due to tariff worries and jitters about the US economy. The S&P and Nasdaq actually hit fourmonth lows recently because of all the volatility. Fun fact: the S&P 500 is now only up less than 4% since the election in November. So, what's behind these mood swings? Tariffs, tariffs, and more tariffs! President Trump's newly imposed and proposed tariffs are a major factor. Remember that 25% tariff on imports from Mexico and Canada? And those doubled duties on Chinese goods, now at 20%? Those are a big deal! Hopes for tariff relief are what perked the market up today, but the worry is still there: tariffs could spark inflation, mess with the economy, and hurt companies. Also, we had that weakerthanexpected privatesector jobs report in February, which raised concerns about economic growth, plus the usual dose of geopolitical tensions thrown in for good measure. What does all this mean? There's a real concern that the recent market weakness is a sign of a slowing US economy. This uncertainty can send investors running for "safehaven" assets. And these tariffs and trade tensions are definitely bad news for businesses, especially those with international operations. We also need to watch consumer confidence as it is an important indicator of the economy. Now, let's dive into our trading recommendations. Given the current volatility and tariff concerns, a cautious approach is warranted. First, let's discuss General Dynamics. It announced nearly a 6% increase in its quarterly dividend, from $1.42 to $1.50 per share, and the stock jumped almost 5% on the news. This marks the 28th consecutive year that General Dynamics has increased its dividend! Their dividend yield is just under 2.3%, solid for a wellestablished company within the S&P 500. Even with some softness in their Gulfstream aircraft division, General Dynamics' commitment to its dividend demonstrates financial discipline and a focus on longterm shareholder value. So I would recommend buying the stock if it dips. Also look at Quanta Services. PWR has demonstrated strong performance, outperforming the broader market by 13.55% on an annualized basis over the past decade. Their annual return is around 24.57%. Based on strong historic return, this would be a solid stock to buy. Now for a little crypto corner. Cryptocurrencies, particularly Solana, had a rally due to the temporary exemption granted by the U.S. on tariffs with Canada, Mexico, and China. We must remember that crypto markets are volatile and prices fluctuate quickly, so proceed with caution. So, while we don't expect everyone to start investing in crypto, keep an eye on the underlying factors driving its movements – especially trade war developments and shifts in risk appetite. These factors are relevant to all investors, including those focused on the S&P 500. Also, remember the AI craze! The Chinese tech companies are fundraising a lot based on the excitement around AI. This also translates to the S&P 500. Make sure the AI companies are taking a pro active stance on AI ethics and saftey! In short, it's all about balance right now. Diversify your portfolio. And as always, remember past performance is not indicative of future results. Finally, let's discuss the potential influence of a new strategic crypto reserve as suggested by a certain presidential candidate. The announcement of the cryptocurrencies that would be a part of this new crypto reserve could make the market very volatile. Keep an eye on Bitcoin, Etherium and Solana. The crypto market could sway between a bull and selloff, based on this. And now, for a quick joke to lighten the mood: Why don't economists like sports? Too many goal conflicts. That's all for today, folks! Remember to do your own research, consult with a financial advisor, and don't let market volatility keep you up at night. This is Barry Bonds Jr., signing off, reminding you to always swing for the fences with your investments, but keep your eye on the ball!