I genuinely don't understand why everyone is shitting a brick. Maybe I've missed something in this tariff story, but has everyone completely forgotten about the TACO trade?
Is there a genuine reason to believe he won't TACO this time?
As far as I can tell we've had multiple stories exactly like this one over the last 6 months and apart from pre-TACO people weren't freaking out like they are now.
Just laying my own cards on the table here, I've been sat in MMFs and gold since Feb due to expected high instability, high inflation, devaluing dollar and lowering interest rates (which admittedly took longer than expected).
My whole portfolio is only worth like £20k so I'm not playing with huge sums of money like most people here are, so I felt like could afford to take a chance like that.
Also I'm in the UK, so devaluation of the dollar doesn't benefit stocks at all, but it does benefit gold. Indeed, VUSA (S&P 500 tracker) is only up 4% YTD whilst gold is up almost 50%.
Seriously, what's with the panic this time?
byu/AnonymousTimewaster instocks
Posted by AnonymousTimewaster
25 Comments
Don’t get it TACO will strike after he’s done inside trading again
It was a 2.5% drop putting us back to prices we had a month ago
What is this sub going to do during an actual bear market?
Ozempic🙏
This was nothing.
Just wait for the real drop and the panic that follows
never been in MMFs personally but good for you if that’s your thing
Wait until some country starts telling Trump to stuff it, or give me X, if you want my rare earths…
One. Market just needs a breather. Folks were on edge.
Two. I don’t think it was US tariff threats that triggered it (we’ve seen this movie) as much as the awareness of China’s move on rare earths. If the West is cut off from the supply, it spells widespread trouble for years.
If you are in MMF. You should consider taking the interest and buy a S&P growth fund (VUG,VOO, SCHG) with it. Preserves your wealth while your extra earnings grow and compound faster. Even with pullbacks you are leaving lot of growth off the table. I understand not wanting to lose the original seed investment amount which is why you can invest just the interest.
EDITED: fixed some grammar
Im with you. We saw him run pretty much the same play earlier this year with the threats. Im guessing it will rebound quick, markets were just running hot and people were looking for any reason to take profits.
Is there a genuine reason to believe he will? Past performance doesn’t guarantee future results so saying it’s because that’s what he did last time doesn’t work.
There’s always panic. It the bubble will bubble. Best not fight it
China wanting to restrict earth metal exports is a big deal. Over 75% of lithium supply to usa is from China.
Well China’s export restriction are quite serious and unlike the orange buffoon, they are serious.
Which tbh its good, if they starve the warmonger’s military industrial complex by cutting of rare earths for military purposes, they lose any ability to survive any long term war so they are forced to do what they fear the most, PEACE!
Rare earth refining is 90% done in China, there’s not enough supply outside of China and setting up such processes would take very long (As well as instantly becoming unprofitable if China removes restrictions so investment goes boom)
People jump out of windows when it’s bad. People aren’t jumping out of windows yet.
After spending some time investigating on socials, the panic is coming from a bunch of people who were apparently betting their whole portfolios on leveraged shitcoins.
A lot of those dropped over 50%, liquidating anyone with even 2x leverage. Bunch of reports of people losing millions or tens of millions.
At the same time, people noticed a huge new account opened to short these coins just *prior* to Trump’s tariff talk and made 100s of millions off their backs in minutes.
Why you’d ever do something so stupid as to stake everything on leveraged shitcoins is beyond me, but I guess there are people doing it.
On Friday I sold all my stocks, my house and my family. This crash is going to change the world as we know it. I’ve been driving in my car in no particular direction since Friday without stopping for sleep. On Tuesday, I will drive home, buy my stocks, house and family back because Taco.
In a bear market I’ll place puts and buy dips with that money
It’s not about the new tariffs as much as it is about investors realizing there is no deal with China. Baked into these gains these last few months has been the idea that Trump will cut a deal with China and that deal will be pretty much the same deal we had before he took office again and that the tariffs would go away. And that these bad economic reports will just be temporary. His post doesn’t just mean tariffs are going up, it means that the deal he promised was pretty much done didn’t exist at all. I think a lot of people who are optimistic about the market right now believe that Trump is using tariffs to negotiate in some sort of 4D chess match, but every now and then they get a reminder that he has no idea what he is doing and that his approach is extremely unpredictable and irrational. If you’re trying to invest though just hitch your ponies up to whatever Trump is selling cause if one thing is for sure he is going to do whatever makes him money. Just check out those insider trades on Friday. I wonder who the three wallets that made $80-200M off that drop in bitcoin? Maybe Trumps three sons who happen to own a cryptocurrency company and have insider knowledge… craziness.
The economy is being driven by the top end consumer, not the middle class. Add extra tariffs and layoffs from the shutdown, and Christmas will be very tepid.
My understanding of the difference is that the previous time Trump imposed tariffs and could lower them, which he did. Now, China has implemented restrictions on any product manufactured there containing rare earth minerals, so they can block any export at any time, creating huge insecurity.
It’s different this time because china started it this time…..trump can’t walk back what the Chinese started you get it?
I don’t know about panic, but it’s certainly a time for collective observation rather than excessive confidence. The facts are that people sold, EU people will sell on Monday, and nobody can fully exclude a mood change that could well occupy us for 12 months.
The real story is that Oil is crashing due to the ME peace deals.
This happens every time there’s a crash.
This panic is not due to Trump. This was a worldwide response to China issuing a letter to everyone that they are going to restrict export of rare earth materials to other countries. They have a virtual monopoly with some of the materials so their threat could have significant impacts around the world.